Zoho founder Sridhar Vembu bets on gold amid glittering rally, cites Lyn Alden on why most investments disappoint

Zoho founder Sridhar Vembu has once again made a case for gold as a reliable long-term store of value – a view he has held for more than two decades – while citing macro strategist Lyn Alden’s deep-dive study on the historical performance of major asset classes.

“I have long been in the ‘gold as insurance against currency debasement’ camp, for over 25 years now,” Vembu wrote in a post. “Over the long term, gold has held its purchasing power in terms of commodities like petroleum, and gold has held its own against broad stock market indexes. No, I am not interested in crypto.”

I have long been in the “gold as insurance against currency debasement” camp, for over 25 years now. Over the long term, gold has held its purchasing power in terms of commodities like petroleum, and gold has held its own against broad stock market indexes. No, I am not… pic.twitter.com/dyfnCFa7T6

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— Sridhar Vembu (@svembu) October 12, 2025

Vembu’s comments come at a time when gold is witnessing a powerful rally. Prices crossed $4,000 an ounce this week, and then climbed even higher after U.S. President Donald Trump imposed 100% tariffs on Chinese goods and announced fresh restrictions on U.S. software exports. The moves sent global markets tumbling, prompting investors to flock toward traditional safe-haven assets like gold and silver.

Citing Alden’s analysis, Vembu reinforced his belief that gold remains one of the few assets that can consistently preserve purchasing power over the long term. In her extensive study, Alden shows that despite the dominance of the U.S. dollar and the rise of modern financial markets, most investments – including government bonds, equities, and real estate – have historically underperformed gold when adjusted for inflation and currency debasement.

According to Alden’s research: U.S. Treasury bonds, even during the dollar’s ascent as the world’s reserve currency, failed to match gold’s purchasing power over time.

While equities as an asset class appear to outperform, just 4% of all stocks account for nearly all excess market returns, meaning the vast majority barely beat short-term government bills.

Real estate, though widely regarded as a stable long-term investment, has lagged gold on an unlevered basis once property taxes, upkeep, and inflation are factored in.

As Alden concludes: “Literally all government bonds and most unlevered real estate have underperformed gold over the long run. Stocks only outperform because a tiny minority of exceptional companies carry the entire index.”

For Vembu, this reinforces a philosophy he has followed for years – treating gold not as a speculative asset, but as a hedge against the erosion of fiat currencies. In an era marked by economic volatility, rising tariffs, and policy uncertainty, his renewed emphasis on gold highlights its enduring role as financial insurance in a world of shifting monetary dynamics.