Gold vs FTSE 100 Comparison

What this chart shows

This interactive tool compares the approximate annual average price of gold in GBP per troy ounce against the FTSE 100 index from 2006 to 2026. Both series use price returns only — the FTSE 100 figures do not include reinvested dividends. Including dividends, the FTSE total return roughly doubles its price return over this period.

Key observations

• Gold has outperformed on price return — rising roughly sevenfold in GBP over the period, driven by flight-to-safety surges during the 2008 crash, COVID, and the post-2022 inflation era.
• The FTSE 100 has been range-bound — only breaking decisively above 7,000 around 2017 and nudging past 8,000 recently.
• Sterling weakness inflates gold's GBP return — GBP fell from ~$1.80 to ~$1.27 over this period, boosting gold's performance in sterling terms independent of gold's underlying move.
• Dividends matter — the FTSE 100 yields approximately 3.5–4% per year. Reinvested over 20 years, that significantly narrows the gap with gold.

Important caveats

Start and end dates matter enormously. This chart begins near a relatively low gold price and covers a period that includes multiple crises favourable to gold. Choosing different windows produces different conclusions. Past performance does not predict future results.

Most investors hold both equities and gold — equities for long-term growth and income, gold for crisis protection and currency hedging. The comparison is useful for deciding the weight of each, not for choosing one over the other.

Read the full analysis

For a deeper dive including dividend-adjusted returns, the GBP/USD effect, and UK tax implications, read our comprehensive guide: Gold vs stocks UK: FTSE 100 vs gold in GBP.