Gold vs Stocks, Bonds, Cash & More: A 25-Year Showdown

1. Introduction: Gold’s Time to Shine?

Gold just hit an all-time high, crossing the US$3,000 mark in early 2025. That’s a headline on its own—but the bigger story is what’s been building for the past 25 years.

Since the year 2000, gold has quietly outperformed just about everything: stocks, bonds, the U.S. dollar—even housing in many cases. While mainstream investors focused on tech stocks, ETFs, and property, gold delivered an average annual return of over 9%—without fanfare, dividends, or hype.

💡 A US$10,000 investment in gold at the turn of the century would be worth over US$100,000 today.

Chart: Gold 2000–2025: From $300 to $3,000

So why are more investors only now starting to take notice?

This article breaks down how gold has stacked up against other major asset classes since 2000—and why it’s still the most under appreciated long-term performer of them all.

Estimated reading time: 8 minutes

2. Gold’s 25-Year Run: Not Just a Spike—A Structural Trend

As the chart above shows: gold has gone up 10X since 2000. But it’s not just about the headline number—it’s how gold got there.

This wasn’t a moonshot. It was a slow, steady climb—with a few powerful rallies along the way.

🔁 Key Phases in Gold’s 25-Year Climb:

• 2001–2011: Gold rose from ~$270 to over $1,900—driven by 9/11, the Iraq war, and the Global Financial Crisis
  
• 2012–2015: A consolidation period, with gold pulling back to ~$1,050
  
• 2016–2020: A new uptrend began, pushed by QE, low interest rates, and rising debt
  
• 2020–2025: The pandemic, war, inflation, and now banking stress have pushed gold above $3,000
  

Each phase reflected a broader shift in the global economic system. Gold wasn’t just reacting to news—it was acting as a barometer for risk, currency debasement, and policy failure.

Gold doesn’t crash like tech stocks, recovers faster than most commodities, and thrives when real interest rates are low or negative.

Gold’s rise is cyclical—but built on fundamentals.

📍 Looking for the performance in New Zealand dollar terms?
In NZD, gold also delivered exceptional long-term returns—rising more than 750% since 2000, with a strong showing again in 2024.

🔗 Read our full 2024 NZD gold review and 2025 outlook here.

3. Gold vs. Stocks: The Long-Term Performance Surprise

Most investors still believe that stocks always outperform gold over time. But the past 25 years tell a very different story.

Between 2000 and 2025:

• The S&P 500 Total Return Index (including dividends) returned around 7.7% per year
  
• Gold returned over 9% per year—even without dividends or buybacks
  

Since 2020, stocks saw strong gains at first—but have struggled more recently amid inflation, rising interest rates, and geopolitical risk.

Gold, meanwhile, has continued climbing, setting new all-time highs in 2025.

Gold feeds on uncertainty. Once again there’s plenty of that right now.

The chart below shows just how wide the gap has become—as gold has quietly surged ahead of both stocks and bonds.

Chart: Compound Annual Returns – Gold vs. Stocks, Bonds, and the U.S. Dollar (2000–2024)

📉 One of the best ways to visualise this long-term relationship is through the Dow:Gold Ratio—which shows how many ounces of gold it takes to buy the Dow Jones Index.
🔗 See the full Dow:Gold Ratio chart and historical trends here.

4. Gold vs. Bonds: Outpacing the “Safe” Choice

Bonds were once seen as the ultimate safe haven. But since 2000, gold has outperformed bonds—and without the hidden risks.

• From 2000 to 2024, the Bloomberg U.S. Aggregate Bond Index returned about 3.9% per year (see chart above)
  
• Gold returned more than double that, with no interest rate risk
  

In short, gold is stability without strings attached. Bonds only feel safe—until they’re not.

📌 Gold not only beat equities and bonds—it did so with fewer drawdowns, lower correlation, and no counterparty risk.

5. Gold vs. Cash: The Inflation Hedge That Worked

Holding cash may feel safe—but over time, it’s one of the riskiest places to store wealth.

Since 2000, the U.S. dollar has lost over 40% of its purchasing power due to inflation.
Gold, meanwhile, has surged from ~$300 to ~$3,100.

💸 $100,000 in cash in 2000 is now worth less than $60,000 in real terms
$100,000 in gold is now worth over $1 million

📌 This applies locally too.
🔗 See how gold has performed against inflation in NZD terms.

6. Bonus Comparisons: Gold vs. Housing, Commodities, and Bitcoin

🏠 Gold vs. Housing: A Clearer Long-Term Win

• Q1 2000: Median U.S. home price = $165,300
  
• Q4 2024: Median home = $419,200 → +154%

Median U.S. House Price (2000–2024)

Gold over the same period:

• From ~$290 to $2,624/oz → +804%
  

Gold outperformed housing by over 5x, with no maintenance, taxes, or regional risks.

📈 And this trend isn’t unique to the U.S.
Over the same 24-year period, gold has also outperformed housing in New Zealand, even after the recent property boom.

🔗 See the full NZ gold vs property comparison in this article.

🛢️ Gold vs. Commodities

The chart below compares the price of gold (yellow line) to the S&P GSCI Commodity Index (black line) since the year 2000.

• In 25 years, gold rose from ~$300 to over $3,000/oz—a 900% gain
  
• The GSCI commodity index only rose from ~200 to ~570, a less than 200% gain, but also with far more volatility

🔍 Why Did Gold Outperform Commodities?

• Lower volatility: Gold doesn’t rely on economic demand like oil or agriculture
  
• Monetary utility: Gold responds to monetary policy and financial risk
  
• Supply stability: Gold production is relatively consistent, avoiding the price crashes seen in oil and industrial metals
  

While commodities are cyclical, gold has shown long term strength.

₿ Gold vs. Bitcoin

Bitcoin has delivered incredible returns since its 2009 launch, but the two assets serve very different roles.

• Bitcoin: Explosive gains—but also sharp crashes (2013, 2018, 2022, 2025?)
  
• Gold: Long, steady growth—built on trust, not tech
  

Bitcoin is said to be digital gold. But currently it still behaves like a “risk on” asset. While gold’s stability is proven.

There’s a good argument to hold both. (Learn more about investing in bitcoin and crypto here.) However, gold remains the more established and battle-tested store of value—especially when trust in institutions is low.

🧠 Key Insight:

Housing, commodities, and Bitcoin all have their place. But over the long term, gold has consistently delivered better risk-adjusted returns—without leverage, debt, or drama.

Stay up to date with how gold compares to other assets. Join our free membership here.

7. Why Are More Investors Finally Catching On?

Gold’s performance over the past 25 years is hard to ignore. But the recent surge in interest isn’t just about past returns—it’s about what comes next.

This isn’t just a short-term reaction to market volatility. It’s a recognition that gold is once again being revalued—this time, against a backdrop of massive global debt and declining trust in fiat currencies.

▶️ Because the Biggest Gains May Still Be Ahead

While gold’s historical performance is impressive, we believe the next leg up could be even more dramatic.

Why?

Because gold is still wildly undervalued relative to the size of government debt and fiat money creation.

💰 Gold vs. Global Debt & Fiat Expansion

• Since 2000, global debt has more than quadrupled
  
• The money supply has exploded due to QE, stimulus, and deficit spending
  
• But gold hasn’t yet adjusted fully to reflect this massive monetary overhang
  

In past eras, gold has revalued itself sharply when debt-to-GDP ratios became unsustainable.

The chart below clearly shows this.

In the aftermath of WWII, US gold reserves backed about 40% of government debt.

Today, that figure is closer to 2%—and government debt-to-GDP is at historic highs.

To return to even 17% backing, gold would need to be priced at $24,000/oz.
At 40% backing, that figure rises to $55,000/oz.

💬 Why This Matters:

These aren’t just theoretical targets. In times of crisis or currency instability, gold has historically been re-monetised to restore confidence.

Now as the financial system grows more fragile, the case for a higher gold price to reset balance sheets grows stronger.

📌 You can explore these valuation frameworks in more depth here:
🔗 How Do You Value Gold? What Price Could Gold Reach?

✅ Recap: Why Gold Has Been the Standout Asset Since 2000

• 🥇 Gold beat stocks, bonds, cash, housing, and most commodities
• 🧯 It preserved wealth while others were eroded by inflation
• 🔐 It has no counterparty risk—just real value
• 📈 It may still be undervalued compared to global debt levels

Gold is the quiet achiever of the past 25 years—and the world is finally starting to notice.

🧭 Conclusion: The Asset That Did What It Promised—And May Still Surprise

Over the past 25 years, gold has quietly done what few assets can claim.

It protected wealth, preserved purchasing power, and delivered long-term returns that outpaced stocks, bonds, cash, and even housing.

While others chased hype or yield, gold stood firm—and let the world come to it.

Now, as global debt accelerates and trust in fiat currencies erodes, more investors are rediscovering gold’s role—not just as a hedge, but as a core pillar of financial security.

And if history is any guide, gold’s most powerful revaluation may still lie ahead.

📌 If you’re ready to start (or strengthen) your position in physical gold or silver, explore our products here. Or get in touch for secure storage options.

What do you think—has gold earned a bigger place in your portfolio? Join in the discussion below.