Why is Gold outshining the Stocks?
Gold has hit all time high, It has beaten Stocks in terms of return over longer period of time
What’s happening: While global stock markets struggle, gold is hitting record highs. This week, the price of 10 grams of gold crossed ₹90,000.
By the numbers:
• Over the past 25 years, gold has outperformed stocks. A ₹1 lakh investment in gold back then would be worth nearly ₹19 lakh today, while the same in Nifty would be around ₹18 lakh.
• Over the last five years:
• ₹1 lakh in gold → ₹1.88 lakh
• ₹1 lakh in Nifty → ₹1.65 lakh
• Over the last ten years:
• ₹1 lakh in gold → ₹3.30 lakh
• ₹1 lakh in Nifty → ₹2.91 lakh
Why it matters: Gold has long been considered a safe haven, especially during economic uncertainty. When markets fall, gold tends to rise—just like now, amid global concerns over trade wars
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The big picture:
• Legendary investor Warren Buffett dismisses gold as a “dead investment” with no real utility beyond jewelry.
• The world’s total gold reserves (216,000 metric tons) could form a cube with 68-foot sides, but unlike land or businesses, gold doesn’t generate income.
The bottom line: Experts recommend diversifying investments. Keeping around 10% of your portfolio in gold can hedge against risks, or more if you prefer stability over returns.