The spectacular rise of gold in 5 years: from $1,900 to $4,270

In October 2025, spot gold trades around $4,270 per ounce, after an unprecedented appreciation trajectory. But the most surprising thing is not its current price, but how much gold has risen in the last five years: from $1,900 USD in 2020 to over $4,200 USD today, which amounts to a gain of approximately +124%. To put this movement into perspective, it’s enough to remember that just a decade ago, the metal was trading around $1,100 USD. The accumulated return over twenty years is nearly 900%, but the second half of this period has concentrated most of the appreciation.

A decade of transformation: gold outperforms Wall Street

The annualized return of gold over the past ten years has remained between 7% and 8%, an extraordinary figure for an asset that does not generate dividends or interest. This performance becomes even more relevant when compared to the main US indices over the same period. Over the last five years, gold’s behavior has been especially notable: it has not only generated consistent positive returns but has also outperformed the S&P 500 and the Nasdaq-100 in cumulative profitability. The S&P 500 has advanced nearly 800% since 2005, the Nasdaq-100 has recorded gains exceeding 5,000%, but in the short five-year span, the precious metal has proven to be more resilient than both.

Four decades of cycles: how gold has reached these levels

Gold’s trajectory can be divided into four well-defined periods. Between 2005 and 2010, gold experienced its most vigorous phase, driven by dollar weakness and the subprime mortgage crisis. It rose from $430 USD to surpass $1,200 USD in just five years. Lehman Brothers’ collapse in 2008 definitively cemented its role as a safe haven asset, at which point the metal barely retreated 2% while stock markets plummeted over 30%.

Between 2010 and 2015, gold underwent a correction. After market stabilization, the metal oscillated between $1,000 and $1,200 USD, marking a period of more technical than structural sideways movement. However, starting in 2015, the landscape changed radically. Trade tensions, the expansion of public debt, and historically low interest rates reactivated demand. The COVID-19 pandemic in 2020 was the final catalyst: gold surpassed $2,000 USD for the first time in its history.

Since then, how much has gold risen in 5 years has been the recurring question among investors. The jump from $1,900 to $4,270 USD represents not only the most aggressive move in a five-year span but also a confirmation of the metal’s new role in contexts of high inflation and expansive monetary policies.

Why gold has shined in recent years

Gold’s exceptional behavior is due to specific economic and monetary factors. Negative real interest rates, resulting from central banks’ quantitative easing policies, have eroded the appeal of traditional bonds. When real yields are in negative territory, gold becomes the preferred option to preserve purchasing power.

Simultaneously, the depreciation of the dollar at various times, especially after 2020, has boosted its price, as the metal is traded precisely in US dollars. Resurgent inflation following the pandemic acted as an additional accelerant: investors sought assets that would protect them against loss of purchasing power.

Geopolitical and trade tensions also played their part. Central banks of emerging economies increased their gold reserves as a diversification strategy and a way to reduce dependence on the dollar, generating sustained buying pressure.

The risk profile that sets it apart

What’s interesting is not only that gold has generated competitive returns but how it has done so with a controlled volatility profile. During 2008, while markets were collapsing, gold barely retreated 2%. In 2020, it repeated this pattern, acting again as a refuge when uncertainty paralyzed other assets.

This counter-cyclical behavior is its greatest strength: it tends to appreciate precisely when stocks and other risk assets wobble. In a context of persistent inflation, low interest rates, and global slowdown, gold has proven capable of competing even with historically winning indices.

How to incorporate gold into your investment portfolio

For the modern investor, gold should not be considered a speculative vehicle but an essential defensive component. Financial advisors typically recommend an exposure of between 5% and 10% of the total assets, whether through physical gold, gold-backed ETFs, or funds that replicate its behavior.

In portfolios heavily exposed to equities, that percentage acts as insurance against volatility and unexpected corrections. Additionally, gold possesses universal liquidity: it can be converted into cash in any market and at any time without capital restrictions.

In times of financial uncertainty or monetary tensions, this feature becomes especially relevant. Gold does not depend on corporate balance sheets or dividend policies but on something more fundamental: confidence in the system.

Final reflection: gold as an anchor of stability

The question of how much gold has risen in 5 years finds a clear answer: from $1,900 to over $4,270 USD, more than doubling the invested capital. However, this numeric figure barely captures the essence of its transformation.

Gold represents something deeper in today’s financial markets: when inflation erodes savings, when real rates turn negative, and when geopolitical tensions intensify, precious metal returns to center stage. Over the last decade, it has demonstrated the ability to compete with major stock indices; in the last five years, it has outperformed them.

For those building a balanced portfolio in a world of increasing uncertainty, gold remains an irreplaceable piece of the financial puzzle. It does not promise quick riches but provides what is becoming increasingly scarce: real stability in times of turbulence.