Gold has jumped about 80% this year, while the Nifty 50 index has risen roughly 10%.
Short‑Term Shine of Gold
Many investors are excited about gold because its price has surged dramatically in the past 12 months.
What the Numbers Say Over 27 Years
When we look at a longer period (from the end of 1998 to today) and measure returns in US dollars, Indian equities have done better than gold.
- The Nifty 50 gave a total return of about 1,922%, which is an annual growth rate of 11.8%.
- Gold’s total return was around 1,473%, or about 10.7% per year.
- The broader NSE 500 index performed even stronger, with a 2,590% gain (12.96% per year).
Why Benchmark Choice Matters
Comparing Indian stocks to the US S&P 500 can be misleading. The S&P 500 grew about 8.6% per year over the same period, which is lower than both the Nifty 50 and the NSE 500.
Currency Effects
All these returns already factor in the depreciation of the Indian rupee, so the advantage of stocks is not erased by a weaker rupee.
Bottom Line for Retail Investors
Even though gold looks attractive in the short run, the long‑term track record shows Indian equities delivering higher returns. For investors who can stay invested for many years, stocks remain a solid choice.
Remember, this is just an overview, not a prediction. Do your own research and consider talking to a certified financial advisor before making any investment decisions.