06 NOVEMBER 2025
Precious metals are having a banner year with the gold price up 50% in U$ terms; by far its best performance since the 1970s.
This is grabbing a lot of market attention, but what’s less well known is how well gold has performed over the longer-term, especially relative to other major assets.
The chart below shows the rebased 10-year returns of gold (dark blue), the FTSE All-World equity index (red) and the FTSE World Government Bond index (light blue). All in U$ terms.
Bullion’s near 240% (13% p.a.) gain comfortably beats even the high-flying global stock market, which has added 200% (12% p.a.) over the past decade. Whilst the measly 4% total return (or 0.4% p.a.) produced by sovereign debt is hardly worth mentioning.
With “bubble talk” intensifying in equity markets, the above statistics raise the question: can gold’s record-breaking run continue?
In the short-term, a significant pullback is clearly on the cards, but the main catalyst for this impressive run is investors seeking a hedge against policy largesse and that long-term trend looks set to persist.
The content of this communication is for information purposes only. Bentley Reid believes that, at the time of publication the views expressed and opinions given are correct but cannot guarantee this and readers intending to take action based upon the content of this communication should first consult with the professional who advises them on their financial affairs. Any companies cited in this report are used to support the view of the authors, and should not be construed as recommendations to purchase or sell the underlying securities. Neither the publisher nor any of its subsidiaries or connected parties accepts responsibility of any direct or indirect or consequential loss suffered by a reader or any related person as a result of any action taken, or not taken in reliance upon the content of this communication.
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