Gold among the top performers in 2024

In addition to its function as a safe haven and store of value, various studies have shown that gold can also improve the risk-adjusted return of an investor portfolio as well as reduce the volatility of a typical stock/bond portfolio. Moreover, in times of geopolitical crises and market turbulence, the precious metal can also contribute to the overall success of the investment year – as was the case in 2024, which just ended with a 35 per cent increase for the gold price in the Eurozone.

Major stock indices could not compete despite individual record highs

While government bonds in the Eurozone mostly yielded between 2.5 and 5 per cent in 2024, some major share indices such as the DAX reached new highs: investors enjoyed gains of up to 20,000 points and an annual increase of 18.85 per cent. Other leading European indices could not keep pace: Italy’s FTSE MIB saw an increase of 12.63 per cent over the last twelve months, while the French CAC 40 dropped by 2.15 per cent. The EURO STOXX, which comprises the largest European companies, closed the year 2024 up 10.28 per cent. Overseas, stock indices performed similarly: the US Dow Jones Index rose by 12.88 per cent over the course of the year, which was also a far cry from the increase in the value of gold.

Certain tech stocks and some cryptocurrencies were the most successful in 2024

Investors holding stocks of certain technology companies last year enjoyed substantial gains, as with SAP shares, rising 69.2 per cent over the year, and Tesla shares, which increased by 75.9 per cent. Google’s parent company Alphabet also recorded a price gain of 44.24 per cent, Apple shares rose by 37.99 per cent in 2024, while Microsoft performed weaker than gold at 20.21 per cent. However, no other asset class was able to keep up with some cryptocurrencies: Bitcoin, the most widely used cryptocurrency, gained 125 per cent in 2024. Some other cryptocurrencies, such as Dogecoin, Ripple or Stellar, were even more successful, but not being promoted as intensively as Bitcoin by the upcoming US government. However, cryptocurrencies are always subject to extreme price fluctuations: In December 2024, for example, Bitcoin lost 11 per cent of its value within a few days. 

It will be exciting to see what 2025 will bring for investors. While the current forecasts for the gold price are predominantly positive, most analysts expect lower growth in value than in 2024.