Dr. Ambs Aremuorin

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The pandemic was an unexpected disruptor for many sectors of the economy, shaking financial markets and testing long-standing investment strategies.

In the wake of lockdowns, investors faced unprecedented uncertainty, prompting them to reconsider traditional investment methods. So, how did gold fare against other investment options like real estate and savings accounts? Let’s dive into the numbers and reveal why gold has been a shining star in the world of investments over the last few years.

The Golden Opportunity: Why Gold Outperformed Other Assets

When the world was thrust into lockdown in 2020, markets were in turmoil, and investors turned to gold as a safe haven asset. As inflation fears soared and interest rates remained low, the price of gold began a remarkable rise, outpacing other major asset classes.

• Gold’s Growth Since the Pandemic: Gold appreciated by 30-40% from its pre-pandemic price in early 2020. The uncertainty in the global economy and the soaring demand for a hedge against inflation pushed gold’s value higher. It became a reliable store of value in a time of economic instability, cementing its role as a protective asset.

The Performance of Other Investments: A Closer Look

While gold soared, other investment avenues like real estate and savings accounts showed varied performances. Let’s explore how these fared:

Real Estate: A Mixed Bag of Growth

Real estate, in many parts of the world, experienced a boom in 2020-2021. Thanks to historically low mortgage rates and the shift towards remote working, property values surged. However, this surge was location-dependent. Some areas witnessed gains of 20-30% in property values, particularly in suburban and rural markets where people sought more space. But in 2025, the effects of higher interest rates and a cooling economy are starting to slow down the market. Real estate’s performance depends largely on geography, making it a less universally reliable investment compared to gold.

Case Study: The U.S. Housing Market

In the United States, home prices increased significantly, especially in cities like Austin and Phoenix. The median home price reached an all-time high in 2022, with a 20-25% increase from 2020 levels. But with the Federal Reserve raising interest rates in 2023 to combat inflation, home sales have slowed, and prices are now stabilizing or even falling in certain regions.

Savings Accounts: Losing Ground to Inflation

On the other hand, keeping money in a savings account has not been a great choice. With interest rates staying low during the pandemic, most savings accounts offered returns well below the rate of inflation, causing the real value of money to erode over time. In 2020, inflation spiked, and savings accounts barely kept pace.

• Real Return on Cash: In many economies, inflation ranged between 3-5% annually from 2020 to 2024, while the average savings account interest rate hovered between 0.1-1%. The gap means that for every £1,000 saved, its purchasing power would have dropped significantly in real terms, making cash savings one of the worst-performing investments.

Case Study: The UK Savings Dilemma

In the UK, many people kept their money in low-interest savings accounts during the pandemic. However, by 2023, it was evident that inflation had far outpaced their earnings from interest. For example, a saver who kept £10,000 in a high-street savings account at 0.5% interest would have seen their money erode in real value, especially with inflation running at around 3-4%.

Why Gold Shines Brighter Than Ever

Gold has always been known as a hedge against uncertainty and inflation. But in the aftermath of the pandemic, its role as a safe haven became more pronounced than ever before. As central banks printed money and governments issued stimulus packages, gold stood firm as an asset with intrinsic value, free from the whims of monetary policy.

In fact, the rise in gold prices was also propelled by the growing trend of diversification in investment portfolios. Investors, seeking to protect their wealth from volatile markets, turned to gold as a stable store of value. This diversification trend led to gold outperforming both real estate and savings accounts.

The Bottom Line: Gold vs Real Estate vs Savings Accounts

• Gold: Appreciated by 30-40% since the pandemic, and has remained resilient as a long-term store of value.

• Real Estate: Saw a 20-30% increase in many markets but is now cooling due to rising interest rates.

• Savings Accounts: Largely offered returns below inflation, leading to a decrease in real purchasing power.

Key Takeaways for Future Investment Strategy

As we look forward to the years ahead, it’s clear that gold remains a strong choice for wealth preservation, especially in times of economic uncertainty. Real estate has its place but requires a more localized approach, while savings accounts continue to underperform in an inflationary environment.

If you’re looking to safeguard your wealth, diversify your portfolio with gold, especially during times of financial instability. Real estate can complement your portfolio if you’re willing to weather its cyclical nature, and keeping money in the bank should be avoided if you want to preserve its real value.

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With this comprehensive guide, you’ll have the insights you need to navigate the world of investments post-pandemic. Stay smart, stay informed, and remember, the right investment strategy could make all the difference.

Aremuorin is a multi-award-winning artist, writer, and humanitarian, known for his unique fusion of music, writing, and advocacy. With a focus on empowerment and social justice, his work aims to inspire, educate, and uplift communities worldwide. Aremuorin has been honored with numerous accolades, including awards in the UK, USA, and Africa, and holds two honorary doctorate degrees for his contributions to both the arts and humanitarian work. His artistry goes beyond entertainment, as he uses his platform to bring attention to issues of mental health, social change, and cultural pride.

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