In 2025, gold outperformed every major U.S. stock index as investors sought to hedge against economic uncertainty. The SPDR Gold Trust, an ETF directly tracking gold, saw a 64% increase. With political turmoil and economic uncertainty persisting in 2026, there is potential for further upside. Gold’s scarcity and historical status as a store of value make it a popular investment choice.

The U.S. government’s $1.8 trillion budget deficit in fiscal 2025 has raised concerns about further devaluation of the dollar. Since leaving the gold standard in 1971, the dollar has lost significant purchasing power. Investors are turning to gold as a hedge against the growing national debt, as it has historically appreciated in value alongside currency depreciation.

While gold has seen significant gains, investors should expect more modest returns in the future. With an average annual gain of 8%, gold has historically underperformed income-generating assets like the stock market. However, in the current economic and political climate, gold remains a valuable component of a diversified portfolio. Hedge fund legend Ray Dalio recommends allocating 15% of a portfolio to gold.

Investors can benefit from gold’s potential upside by investing in the SPDR Gold ETF, which tracks the performance of gold without the need for physical storage. The ETF has an expense ratio of 0.4%, making it a cost-effective way to own gold. While gold may not generate revenue or earnings, it is a popular choice for investors seeking a safe haven asset in times of economic uncertainty.

Read more at Yahoo Finance: Should You Buy SPDR Gold ETF After Its 64% Rally in 2025? History Says It Could Do This in 2026.