Gold has long been considered a safe haven investment, and for good reason. It has the potential to protect against inflation, currency fluctuations, and geopolitical risks. In fact, gold has consistently outperformed other asset classes, including stocks and bonds, over the long term.
But how does gold compare to more traditional investments, such as the stock market? To answer this question, let’s look at the returns of gold compared to the Nifty 50 and the Sensex over the past 10 to 15 years.
According to data from the World Gold Council, the price of gold has increased by approximately 12% per year over the past decade. In comparison, the Nifty 50 has returned an average of 9.3% per year, while the Sensex has returned an average of 9.9% per year.
While these returns may seem modest, it’s important to keep in mind that gold has a much lower risk profile than stocks and is less volatile. This means that gold can be a useful tool for diversifying your investment portfolio and mitigating risk.
So, should you invest in gold? As with any investment, it’s important to do your due diligence and consider your financial goals and risk tolerance. For Indian millennials looking to diversify their portfolio and potentially protect against inflation and other risks, gold can be a good option.
There are several ways to invest in gold, including physical gold, gold ETFs, and gold mining stocks. Physical gold can include gold bars, coins, and jewelry, and can be purchased from a variety of sources. Gold ETFs, or exchange-traded funds, track the price of gold and can be easily bought and sold like stocks. Gold mining stocks, on the other hand, give investors exposure to the gold industry through the performance of gold mining companies.
In conclusion, gold can be a valuable addition to a diversified investment portfolio, and offers the potential for strong returns with a lower risk profile compared to stocks. For Indian millennials looking to invest in gold, there are several options to consider, including physical gold, gold ETFs, and gold mining stocks. As always, it’s important to do your due diligence and consult with a financial advisor before making any investment decisions.