Gold Vs Sensex Vs Deposits: In the world of investment, there is always a question in the mind of the common man – where to invest money which will be safe and also give profit. In times of market uncertainty and inflation, taking this decision becomes even more difficult. The data of the last four decades solves this puzzle to a great extent. In a report by WhiteOak Capital, a comparative analysis of the performance of gold, stock market (Sensex) and bank deposits (FD) has been done from 1985 till now, i.e. in the last 40 years. This report not only tells the story of returns, but also tells which asset class did not leave the investor in difficult times.
Who won?
If we turn back the clock and assume that an investor had invested Rs 100 each in gold, bank FD and stock market in the year 1985, then what would have been his picture today? According to the data, by March 2025, that Rs 100 invested in gold would have increased to Rs 6,518. At the same time, this amount would increase to Rs 2,100 in bank deposits.
The most shocking figure here is of the stock market. The value of Rs 100 invested in BSE Sensex would have reached Rs 13,484. Looking at this figure, it seems that the stock market is the best, but the risk aspect is equally big in it. This return of Sensex has come after huge fluctuations, while gold has given the benefit of compounding at a steady pace.
Why did FD lag behind?
The report shows that the growth in bank deposits has been very slow. If we exclude inflation, then the real value of Rs 100 in FD in 1985 remains only Rs 1,478 today.
If we look at the decades, the performance of equity was also weaker than gold at many stages like 1995, 2005 and 2015. This proves that it is not easy to become rich by relying only on traditional methods or only on the stock market. Building ‘real wealth’ without proper asset allocation is a difficult challenge.
When the market fell, gold shone
Gold is called the ‘companion of trouble’ in the world of investment, and the statistics also prove this. Financial history is witness to the fact that whenever the stock market fell, gold supported the portfolios of investors. For example, in FY 2020, when the Sensex fell by a huge 22.9%, gold gave a strong positive return of 29.7%.
Similarly, in FY 2012, Sensex fell by 9.2%, while gold jumped by 32.9%. Since 1985, gold has given an average annual return (CAGR) of 10.2%, which is much better than both bank deposits and inflation.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money related decisions.