SPDR Gold Trust outperforms S&P 500, offers stability in uncertain times

From Yahoo Finance: 2025-03-24 05:20:00

The U.S. stock market struggled, with the S&P 500 correcting, but the SPDR Gold Trust surged 15% this year and 40% over the past 12 months. Gold is a valuable commodity often overlooked by individual investors. Gold is a safe place for investors during uncertain times, as seen in the VIX volatility index spiking.

Interest in gold rises during times of uncertainty due to potential tariffs, trade wars, and other global factors. Gold prices are impacted by the U.S. money supply and government spending. Gold is considered a store of value due to its limited supply and widespread appeal. The SPDR Gold Trust has remained competitive with the S&P 500 since its launch in 2004.

Investors should view gold as a complementary component of a diversified portfolio, offering stability during times of uncertainty. While owning a gold ETF like the SPDR Gold Trust could potentially lead to wealth, it’s not guaranteed. The SPDR Gold Trust has remained competitive for two decades, but future government and monetary policies could impact its market prices.

The Motley Fool Stock Advisor team identified the 10 best stocks for investors to buy now, with SPDR Gold Trust not included. Investing in gold can offer stability during uncertain times, but it’s more of a defensive investment compared to stocks. The Motley Fool Stock Advisor’s total average return is 839%, outperforming the S&P 500’s 164%.

Justin Pope has no position in any stocks mentioned, and The Motley Fool has a disclosure policy. “Is SPDR Gold Trust a Millionaire Maker?” was originally published by The Motley Fool.

Read more: Is SPDR Gold Trust a Millionaire Maker?