If you’re thinking about buying gold, one of the first things you’ll want to know is how it’s actually performed. Not the hype, not the speculation, just the numbers. So let’s look at what gold has done over the past decade and what that means for someone considering it as an investment today.

The Headline Numbers

In early February 2016, gold was trading at around $1,130 per ounce (roughly £790 at the time). Fast forward to early February 2026, and gold is sitting at approximately $4,900 per ounce, or around £3,950 in sterling.

That’s a total return of roughly 330% in US dollar terms over 10 years. For UK buyers, the return has been even stronger at around 400%, thanks to the pound weakening against the dollar over the same period, particularly after the Brexit vote in 2016.

In annualised terms, that works out to approximately 15% to 16% per year in dollars, and closer to 17% to 18% per year in pounds. Those are remarkable figures for any asset class, let alone one that doesn’t pay dividends or interest.

Putting That in Perspective

To give you a sense of scale, if you’d bought £10,000 worth of gold in early 2016, that investment would be worth approximately £50,000 today. That’s not a typo. Gold has roughly quintupled in value for UK investors over the past decade.

For context, the FTSE 100 has delivered a total return (including dividends) of around 80% to 90% over the same period. The S&P 500 has done better, but even strong equity markets have struggled to match gold’s performance in recent years.

Gold’s 10 year annualised return of around 15% also comfortably outpaces inflation, which has averaged roughly 3% to 4% per year in the UK over the past decade. So not only has gold preserved purchasing power, it has significantly increased it.

It Wasn’t a Straight Line

It’s worth being honest about the fact that gold’s journey over the past 10 years hasn’t been smooth. It rarely is.

Between 2016 and 2019, gold moved relatively slowly, drifting between $1,100 and $1,500. It wasn’t until 2020 that things really started to pick up, with the pandemic driving a surge in safe haven demand that pushed gold above $2,000 for the first time.

After consolidating for a couple of years through 2021 and 2022, gold found its feet again in 2023 and 2024, with central bank buying and persistent geopolitical uncertainty pushing prices to new records. Then 2025 turned out to be one of gold’s best years in modern history, with returns of over 60% in a single year driven by a combination of inflation fears, global instability, and continued central bank accumulation.

Early 2026 has seen significant volatility, with gold briefly touching above $5,000 before pulling back. But even after the recent swings, the 10 year picture remains exceptionally strong.

Year by Year: A Rough Guide

Here’s a simplified look at how gold performed each year over the past decade in US dollar terms:

2016: +9% . 2017: +13% . 2018: -2% . 2019: +18% . 2020: +25% . 2021: -4% . 2022: -1% . 2023: +13% . 2024: +27% . 2025: +64%

A couple of things stand out. First, the down years were mild. Gold’s worst annual loss in the past decade was just 4%, which is nothing compared to the kind of drawdowns you see in equity markets. Second, the up years were often significant, with several years delivering returns well into double digits.

That’s a big part of gold’s appeal. The downside tends to be limited, while the upside can be substantial.

Why Has Gold Done So Well?

Several factors have combined to drive gold’s strong performance over the past 10 years.

Central bank buying has been enormous. Countries like China, India, Russia, Poland, and Turkey have been aggressively adding to their gold reserves, particularly since 2022. This sustained institutional demand has put a firm floor under prices.

Inflation made a comeback. After years of low inflation, the post-pandemic surge reminded everyone why gold has historically been valued as a hedge against rising prices. Even as inflation has cooled somewhat, the memory of it has kept investors interested in gold.

Geopolitical instability has been a near-constant feature of the past decade. From Brexit and trade wars to the pandemic, the war in Ukraine, tensions in the Middle East, and shifting global alliances, uncertainty has been the norm rather than the exception. Gold thrives in these environments.

Low confidence in fiat currencies has also played a role. With government debt levels rising around the world and questions about long-term fiscal sustainability, more investors have turned to gold as a form of monetary insurance.

How Does Gold Compare to Other Assets Over 10 Years?

Gold’s 10 year performance stacks up well against most major asset classes. Here’s a rough comparison of annualised returns:

• Gold (USD): approximately 15% to 16% per year. Gold (GBP): approximately 17% to 18% per year.
• S&P 500 (total return): approximately 10% to 12% per year.
• FTSE 100 (total return): approximately 6% to 7% per year.
• UK property: approximately 3% to 5% per year.
• Cash savings (UK): approximately 1% to 2% per year.
• UK inflation: approximately 3% to 4% per year.

Gold hasn’t just beaten inflation. It has beaten most of the alternatives too, particularly for UK investors who’ve benefited from the additional tailwind of a weaker pound.

Does Past Performance Guarantee Future Returns?

Of course not. That’s the standard disclaimer, and it’s an honest one.

Gold’s exceptional 10 year return has been driven by a specific set of circumstances. If central banks slow their buying, if geopolitical tensions ease, or if real interest rates rise significantly, gold could underperform. There have been decades in gold’s history where returns were flat or negative.

But here’s the thing. Gold’s role in a portfolio isn’t just about chasing the highest return. It’s about diversification, protection, and stability. Even if gold’s returns moderate from here, it still offers something that stocks, bonds, and property don’t: a physical asset with no counterparty risk that has held its value across centuries.

The past 10 years have been a powerful reminder of why gold belongs in a well-rounded portfolio. Whether the next 10 years are as strong remains to be seen, but the case for holding gold as part of your long-term wealth strategy is as solid as ever.

What This Means for UK Buyers

If you’re a UK investor, the 10 year picture is particularly encouraging. Sterling-denominated gold returns have been boosted by currency movements, and the tax advantages available on legal tender coins like Britannias and Sovereigns mean you could have captured much of that 400% return completely free of Capital Gains Tax.

That’s a combination that’s hard to find anywhere else.

At SMP Bullion, we’ve helped customers build gold holdings throughout this 10 year period, and we continue to offer competitive prices on a wide range of gold coins and bars. Whether you’re looking to start your first purchase or add to an existing position, we’re here to help.

Prices referenced are approximate and based on spot gold prices in early February 2026. Past performance is not a reliable indicator of future results. This article is for informational purposes only and does not constitute financial advice.