While investors chase the newest fades – tech shares, crypto, real estate trees – it has delivered it a quarter after a quarter. Driven by tariff tensions, stubborn inflation and increasing global uncertainty, the yellow metal has recently had a spectacular run. But this is not just a short -term rally. Gold has performed better in the long term than some of the biggest names in the investing world.
According to Aequitas Investments, Gold has exceeded both the S&P 500 and the Nifty 50 in the last 25 years – not not to mention fixed -income instruments and even real estate.
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Consider the figures: since 2000 gold has grown almost 10 times in dollars, while the S&P 500 has been returned around 4.5 times. In rupee, gold rose about 20x against the Sensex’s about 16x. In the past 15 years, Gold has yielded around 12% in the annual return versus the Sensex’s 10-11%.
So, is gold the greatest possession of our lives? The answer can just be yes.
Gold: The Pacific Outperformer
Gold thrives in times of uncertainty – think of pandemies, inflation peaks, financial crises. It is a reliable hedge in turbulent times. And yet it is rarely seen as exciting.
In contrast to shares that represent companies with income and dividends, gold has no intrinsic cash flow. That, in combination with its traditional image, it gives an old school. It does not make newspaper heads such as Crypto or wears the ambitious allure of real estate. In regular culture, creating wealth is usually associated with investment funds, shares or properties. Gold? Boring.
There is also friction when it comes to possessing gold.
Physical gold remains the most common option, but it is not always efficient or affordable thanks to making costs, storage problems and liquidity problems. In the meantime, central banks around the world are among the largest buyers and sellers of gold – but the average investor hears much more about SIPs than sovereign reserves.
Simply put, gold has a bit of a PR problem.
What is the following gold?
Gold is now nearby £90,000 per 10 grams, while the Sesex is around 76,000 Mark. A common rule of thumb is that when the Sesex-to-Gold ratio falls under 1, shares have a tendency to exceed the next two to three years. The ratio is currently around 0.84, which could indicate a limited upward upward upward for gold.
Read this | Rising gold prices brought the government into a pickle that brought over bonds outlets
Yet the macroom environment could tell a different story. Trade tensions, geopolitical shifts and economic instability can continue to support gold prices. And in the longer term, the case for gold remains strong.
Why? Because the world introduces a new era of structural uncertainty. We are on our way to a multipolar world order-a-led Alliance, led by China and a series of non-lied players. Globalization is no longer seamless. Rates, localization and broken supply chains will be the new normal. Add to that the unpredictable impact of artificial intelligence on jobs and industries, and you have the inputs of a deeply volatile future.
Gold’s long -term growth story is not nearly over in such a world.
A cautious bet for retail investors
Traditionally gold is seen as a hedge or diversification tool. But in the future it can also be a source of real growth in a portfolio.
Retail investors would do well to allocate 10-15% of their portfolio to gold-not for immediate returns, but as a long-term strategic game. More than 15%? Probably not. Gold still generates no income and excessive exposure can drag the portfolio growth of the portfolios.
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In the meantime, it may be time for Gold to hire a number of influencers to dance to the melody. A little sparkle on social media would not harm the image. Who knows? We may need an advertising campaign with the slogan: “Golden Accha Hai. ”
Sandep Das is the founder and director of Building Leaders for Tomorrow, and the author of How Business Storytelling works.
