Goldman Sachs Chairman: Invest more in stocks than gold for long-term investment

Southern Finance 21st Century Business Herald Reporter Zheng Qingtian Beijing Report

“If you are a long-term investor of 10, 20, or 30 years, stocks outperform gold over the long run.” Recently, David Solomon, Chairman and CEO of Goldman Sachs Group, said in Beijing to the 21st Century Business Herald and other Chinese media, “Gold is very popular now, but over decades, stocks can still outperform gold.”

In 2025, international gold prices soared, with an annual increase of nearly 70%. Entering 2026, gold continued its strong rally, once breaking through $5600 per ounce. When asked about choosing between gold and stocks, Solomon emphasized that although recent central bank gold-buying trends are noteworthy, in terms of long-term investment, stocks remain the better choice.

Geopolitical tensions are one of the key drivers behind this round of gold price increases. Regarding the impact of geopolitical events on investment decisions, Solomon said that it is very important now to distinguish “noise” from substantive developments. “The media amplifies noise, but the structure of the global economy has not fundamentally changed. Major economies still need to grow and operate within that structure.”

In his view, uncertainty is indeed higher than before, but “not excessively so.” “Political rhetoric and geopolitics may amplify uncertainty, affecting investments and markets. The U.S. government will also quickly adjust strategies in response to market reactions to uncertainty.”

Solomon recommends that capital allocation should adopt broad and diversified portfolios, covering major markets such as the U.S., Europe, and China, and balance between stocks and fixed income assets. For investors of different ages, he offers differentiated advice: young people can increase equity allocations to leverage long-term compound growth; older investors should adopt more conservative allocations.

China’s Economy Needs to Accelerate Transition to Consumption-Driven Growth

Regarding China’s economy, he said that China achieved its growth targets last year, which is very positive. He noted that China holds an important position in the global economy, being a broad, diverse, and complex economy with strong technological innovation capabilities, benefiting from a robust manufacturing and export base.

However, he pointed out that China’s consumption remains somewhat weak, and the economy needs to promote a rebalancing from export-driven to consumption-driven growth. Considering China’s large population base and wealth growth, he believes that in the next decade, China’s economic growth will increasingly come from the development of consumption and services rather than manufacturing exports.

Regarding whether China’s stock market can sustain a bull run this year, he believes that globally, it depends on specific growth and profit models. The Chinese stock market “still has appeal,” but is no longer as cheap as a year ago. Foreign investment in China’s markets has increased last year, and a mild return of capital flows is expected to continue for some time. Global investors are looking forward to a more balanced and open Chinese economy.

Experiencing 30 Years of China’s Economic Development

Since his first visit to China in the 1990s, Solomon has visited China multiple times and witnessed the tremendous changes from “more bicycles than cars” to becoming a key global economy today. “I have seen great progress in industrial development and technological innovation,” he said. “Today, China is one of the most important and dynamic economies in the world.”

Talking about Goldman Sachs’ development in China, he reaffirmed the group’s long-term commitment to the Chinese market and expressed encouragement about the gradual opening of capital markets, also looking forward to new opportunities brought by further opening up. He pointed out that if global institutions can gain more access in asset management, wealth management, and other fields, it will help attract more capital and support the development of the domestic market.

He revealed that Goldman Sachs’ business in China is centered on investment banking, with recent highlights including increased IPO activity, a rebound in advisory services, and the development of Chinese innovative tech companies, broadening Goldman Sachs’ investment banking opportunities in China.

Advice for Young People: Let Time Work for You

He suggests that young people should allocate funds into diversified investment portfolios to achieve long-term compound growth, while working hard and continuously accumulating investments. If they can achieve an annual return of 7%, their capital could double every 10 years and grow eightfold after 30 years.

“If you keep investing more principal and reinvesting dividends and earnings, the power of compound interest will truly manifest. Saving, investing, reinvesting—cyclically increasing value—the power of compound interest is very strong,” he said.

He further pointed out, “Young people working hard and accumulating investments are preparing for their future lives—so that when they no longer necessarily need to work as they do now, they still have ample security and options. Always remember to view wealth with a long-term perspective. Be patient, and let time and compound interest work for you.”

When asked for career advice, he said, “I am very optimistic about the world. Despite tensions and challenges, the world is generally full of hope. Technological innovation, healthcare improvements, and quality of life enhancements all provide more possibilities for your generation. A career is a marathon, not a sprint. Work hard, be patient, avoid impulsiveness, and focus on long-term goals. Life is a long race.”