Gold and the S&P 500 are two of the most watched assets in the world of investing. In 2025, something unusual happened that caught the attention of both experts and everyday investors. For the first time since the 1970s, gold and the S&P 500 both reached new highs at the same time, not just once, but six times throughout the year. This rare event has led many to ask: Did gold really beat the S&P 500 in 2025? To answer this, we need to look closely at what drove both markets, how they performed, and what this means for investors.
First, let’s understand what these assets represent. Gold is often seen as a safe haven. When people are worried about inflation, economic instability, or global crises, they tend to buy gold. It doesn’t pay dividends or interest, but its value can rise when confidence in other investments falls. The S&P 500, on the other hand, is a basket of 500 of the largest publicly traded companies in the United States. It represents the health of the stock market and, by extension, the broader economy. When companies do well, the S&P 500 tends to go up.
In 2025, both gold and the S&P 500 had strong years. Gold prices rose as investors sought protection against inflation and global uncertainty. At the same time, many stocks in the S&P 500 doubled in value, driven by strong corporate earnings and profits. This created a unique situation where both safe-haven assets and growth stocks were performing well at the same time. Joel Litman, chief investment strategist at Altimetry, called this a “Goldilocks for gold and stocks” scenario, meaning conditions were just right for both to thrive[1].
But did gold actually beat the S&P 500? To answer this, we need to compare their returns. While both assets peaked together six times in 2025, the S&P 500’s gains were often more dramatic, especially when you consider that hundreds of stocks within the index doubled in value. Gold’s rise was steady and significant, but it didn’t match the explosive growth seen in some of the top-performing stocks. This means that, for most of the year, the S&P 500 delivered higher returns than gold for investors who were fully invested in the index.
However, the story isn’t that simple. Gold’s role isn’t just about returns—it’s about stability and diversification. When the stock market is volatile or when there are signs of economic trouble, gold often holds its value or even goes up while stocks fall. In 2025, even though both were rising, gold provided a cushion against potential downturns. Investors who held both gold and stocks were able to enjoy growth from the S&P 500 while also having the safety net of gold.
This dual rally is rare. The last time something like this happened was in the 1970s, a decade marked by high inflation and economic upheaval. Back then, both gold and stocks did well, but for different reasons. Gold rose because people were worried about the value of money, while stocks eventually recovered as companies adapted to the new economic reality. In 2025, the reasons were a bit different. Global crises and inflation fears pushed gold higher, but the S&P 500 was also lifted by strong earnings and innovation in key sectors like technology and energy.
For investors, this created opportunities to balance their portfolios. Instead of choosing between gold and stocks, many found it beneficial to hold both. Gold acted as insurance, while stocks offered the chance for substantial growth. This approach is sometimes called “having your cake and eating it too”—enjoying the upside of a booming stock market while protecting against the downside with gold.
It’s also worth noting that not all stocks in the S&P 500 performed equally. While some companies saw their shares double, others lagged behind. This means that simply investing in the S&P 500 didn’t guarantee huge gains—it depended on which stocks you owned. Gold, by contrast, is a single asset, so its performance is easier to track and compare.
Another factor to consider is liquidity. Gold is a physical asset, and while it can be bought and sold easily in markets, it doesn’t generate income like stocks that pay dividends. The S&P 500, especially through index funds or ETFs, offers daily liquidity and the potential for regular income through dividends. This makes stocks more attractive for investors who need access to their money or want to earn income while they wait for capital gains.
Looking at the bigger picture, the simultaneous rise of gold and the S&P 500 in 2025 reflects a complex global economy. On one hand, there were enough worries about inflation and geopolitical risks to push gold higher. On the other hand, American companies were able to grow their profits despite these challenges, lifting the stock market. This divergence highlights how different parts of the world can experience different economic realities at the same time.
For individual investors, the lesson is clear: diversification matters. Relying solely on gold or solely on stocks can be risky. In 2025, those who diversified across both asset classes were able to capture gains from a rising stock market while also protecting themselves with gold. This strategy isn’t about predicting which asset will “win” in a given year, but about preparing for different scenarios.
In the end, while the S&P 500 generally delivered higher returns than gold in 2025, gold still played a vital role for many investors. Its ability to rise alongside stocks, rather than moving in the opposite direction as it often does, made it a unique part of portfolios this year. The fact that both peaked together six times is a historical anomaly that underscores the unusual nature of the 2025 market environment.
Investors should remember that past performance doesn’t guarantee future results. The conditions that led to this dual rally may not repeat themselves. What worked in 2025 might not work in the years ahead. That’s why it’s important to stay informed, keep an eye on global trends, and adjust your investment strategy as needed.
The story of gold and the S&P 500 in 2025 is a reminder that markets are unpredictable. Sometimes, the unlikely happens, and both safe havens and growth assets can rise together. For those who were paying attention, it was a year of opportunity—a chance to grow wealth while also protecting it. Whether gold “beat” the S&P 500 is less important than understanding how each fits into a broader, balanced approach to investing. The real win in 2025 was for those who recognized the value of both and positioned themselves accordingly.