Gold, A Reliable Asset? How Does It Fare Against Equity Markets? Here Is What A Report Claims

Gold prices, along with silver have seen a minor dip in the recent past, amid volatility in the international markets. However, when one looks at the larger picture, the value of the yellow metal has increased significantly in the recent past.

In the past year, the price of gold has increased by 39.73 per cent from its price of around Rs 63,285 for 10 grams of 24k gold (99.9 per cent) to Rs 88,430 for 10 grams.

Gold Gets More Returns?

This begs to ask the question, is gold a reliable asset? While many have historically categorized gold as a low-return asset, this surge in numbers of opens a window of opportunity.

According to a report from Aequitas Investments, gold has given better returns, surpassing major stock market indices like the US' S&P 500 and India's NSE Nifty 50. According to the report accessed by ANI, the metal has delivered better returns than these indices in the past 25 years, since 2000.

Higher Returns Than Indices

According to the report, gold has also outshined India's NSE Nifty 50. Over the last two and a half decades, gold's value has jumped 19.32 times, while Nifty 50 has grown 15.67 times (This is in terms of Indian Rupee).

According to the report, compared to the S&P 500, one of the biggest indices in the world, which has increased 4.34 times during the same time span, gold has surged 9.99 times since 2000 (This is in terms of the US dollar).

This, therefore, suggests that during the past 25 years, gold has more than doubled the returns of the S&P 500.

While speaking to ANI, Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, said, "Gold prices continued their upward momentum, driven by a weaker dollar index and sustained support from US tariff policies.

He further added, "The focus now shifts to upcoming US Retail Sales and Core Retail Sales data, which could influence the next move in gold. The trend remains positive, with Rs 85,750 acting as a support zone and Rs 87,000 emerging as the next resistance level."

Surge Of Gold

As per latest numbers available, the price of gold, in the city of Mumbai stands at Rs 83,430.00 for 10 grams of pure gold. In the past month alone, the value of the yellow metal has gone up by over Rs 8,000 per 10 grams.