How profitable is investing in gold? Here’s what the data reveals
Gold has been synonymous with wealth, security, and value for centuries. This precious metal remains one of the most attractive options to diversify investment portfolios and protect purchasing power. But… how profitable is it today to invest in gold? What are its advantages and disadvantages? Statista data offers insight into the role gold is playing in investment portfolios worldwide.
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Gold performance in 2024 and 2025
According to Statista’s report “Gold as an Investment”, gold had one of its best recent years in 2024: its return was +27.2%, ranking as the second most profitable asset of the year, only behind Bitcoin.
In the long term, the data is also positive. From 1971 to 2025, the average annual return of gold has been 8.62%, placing it above other assets such as Treasury bonds or time deposits.
Even across more recent time windows:
- 10-year: 10.65% average per year
- 20-year: 10.92% average per year
These figures confirm that investing in gold can be profitable, especially as a long-term strategy.
What factors have driven the price of gold?
Gold prices have reached historic levels. By the end of 2024, it was trading at $2,609 per ounce, and by June 2025 it surpassed $3,334/oz, marking an all-time high.
This surge has been driven by:
- Global economic uncertainty (inflation, war, geopolitical tensions).
- Expansionary monetary policies, which reduce the value of fiat money.
- Strong purchases by central banks, which accumulated 1,086 tons in 2024, according to the World Gold Council.
Gold has also seen a strong rebound in its use as an investment instrument. In the first quarter of 2025 alone, 552 tons were allocated to the investment sector—more than any other segment.
Is investing in gold a good idea?
The market expects gold to remain attractive. The projection for 2026 is an average price of $3,200/oz, and futures contracts through 2030 estimate a value of up to $2,795/oz.
In addition, gold maintains extremely high global liquidity: it is the second most traded asset in the world, with $233 billion in daily transactions, second only to the S&P 500.
What are the main advantages of investing in gold?
Investing in gold offers several strategic benefits:
- Stability amid uncertainty: It is a safe-haven asset, especially useful during inflation or financial crises.
- Diversification: It has low correlation with other assets such as stocks or bonds, which helps reduce risk in a portfolio.
- Liquidity: It can be easily bought and sold almost anywhere in the world.
- Preservation of value: Gold holds its value over time, even when other investments lose ground.
What are the disadvantages of investing in gold?
Like any asset, gold also has weak points:
- It generates no income: It does not pay dividends or interest. Its profitability depends exclusively on price appreciation.
- It can be volatile: While stable in the long term, it can experience sharp short-term fluctuations.
- Storage costs: If you buy physical gold (bars or coins), you must consider storage and insurance expenses.
- Sensitive to interest rates: When real rates rise, gold tends to become less attractive as an investment.
What role does gold play in institutional portfolios?
Central banks have been key players in gold’s appreciation. Countries such as the United States (with more than 8,133 tons in reserves), Germany, and Italy have maintained or increased their holdings.
Russia stands out in particular: it increased its reserves from 1,208 tons in 2014 to more than 2,332 tons in 2024, reflecting a clear strategy of monetary backing.
Is it worth investing in gold?
The evidence suggests that yes, investing in gold can be profitable, especially in contexts of global instability like the current one. Its performance over decades supports its role as an effective alternative to preserve value, diversify portfolios, and hedge against inflation.
However, like any investment, it should be part of a comprehensive strategy. Consulting a financial advisor, defining goals, and balancing risks is key to making the most of gold’s advantages without ignoring its disadvantages.
💡 Technical recommendation: Many experts suggest allocating between 5% and 10% of a total portfolio to precious metals such as gold, depending on risk profile and investment horizon.