The S&P 500 has been in one of the strongest bull markets in history since 2009. Yet surprisingly, in the past decade, the SPDR Gold Trust (ETF) (NYSEARCA:GLD) has actually outperformed the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) by more than 15 percentage points (even including the SPY’s dividends). The GLD is up nearly 120% since 2006.

Source: Jeremy Vohwinkle via Flickr (Modified)

That didn’t come in a straight line, of course. That covers a major run-up all the way through 2011, the declines of the next five years and gold’s rebound in 2016.

More importantly to new money: Many of the reasons the GLD has outperformed the SPY in the past 10 years could hold true for the next 10 years as well. Here’s a look at 10 reasons gold could prove to be a better 10-year investment than stocks.

1. Gold for Diversification: Gold’s 12-month correlation to the S&P 500 in the past 45 years is exactly zero. Therefore, for investors looking to diversify their portfolios, owning gold (via the GLD or otherwise) is an easy way to reduce overall risk. Investors will continue to buy gold to diversify their portfolios in the next 10 years.
2. Rising Debt Levels: Global debt levels have been skyrocketing as a number of central banks try to spend their way out of slowing economic growth. When countries print money, and debt starts piling up, investors get nervous and turn to gold. It’s unlikely that global debt levels will start declining in the next 10 years.
3. Growing Gold Demand: Like any other free market, gold prices are determined…

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