With diwali approaching, investors are weighing whether gold or stocks will deliver better returns. A 15-year performance analysis provides interesting insights.

1. gold Outshines Stocks Over 15 Years

  • Annual Rs 10,000 investment from 2010–2025:
    • Gold: Rs 1.5 lakh → Rs 4.47 lakh
    • Nifty 50: Rs 1.5 lakh → Rs 3.72 lakh
  • Gold multiplied 4.5 times, Nifty grew 3.7 times.

2. Shorter-Term Performance: gold Still Leads

  • Last 5 Years:
    • Gold CAGR: 16.1%
    • Nifty CAGR: 13.8%
  • Last 10 Years:
    • Gold CAGR: 15.1%
    • Nifty CAGR: 12.3%
  • Gold’s sharp rallies during uncertainty gave it an edge over equities.

3. Year-Wise Comparison Highlights

  • 2010 Investment: gold Rs 54,200 vs Nifty Rs 39,180
  • 2015 Investment: gold Rs 41,340 vs Nifty Rs 31,630
  • 2020 Investment: gold Rs 20,980 vs Nifty Rs 19,370
  • Consistently, gold outperformed during global uncertainty or stock market slowdowns.

4. Why gold Has Performed Better

  • Considered a safe-haven asset during inflation or volatility
  • Benefited from global economic uncertainty, geopolitical tensions, and fluctuating interest rates
  • Equities reflect company and economy growth, but face occasional volatility

5. Expert Advice for This Diwali

  • Balanced Approach: Combine gold and equities for stability + growth
  • Low-Risk Investors: Allocate more to gold as a hedge against market swings
  • High-Growth Seekers: Focus on equities but stay prepared for fluctuations
  • Diversification can help investors enjoy both safety and compounding returns

✅ Bottom Line: Over 15 years, gold outperformed Nifty 50, turning Rs 1.5 lakh into Rs 4.47 lakh, compared to Rs 3.72 lakh from equities. While stocks drive long-term wealth creation, gold remains a shining safe investment this festive season.

 

Disclaimer:

The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.

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Kokila Chokkanathan

09/09/2025 11:32 AM