In the last one year, Gold has given more than 50 percent returns to investors.
For the last few years, the prices of gold have been seen continuously. Gold has earned investors to investors on an annual basis. The same earnings have not been made from the stock market. We are not saying this to our mind. If we look at the figures of the last two decades, the average return figure is telling a similar story. If we talk about the last one year, then Gold has given more than 50 percent returns to investors. While the Sensex has seen a decline of 1.2 percent.
According to experts, the prices of gold have not increased like this. Jio political tension, then uncertainty among investors spread due to Trump tariff has done its work. But continuous purchases from Global Central Banks have also contributed significantly. Due to which prices have reached the new record level. Let us also tell you how Gold has dust in the matter of giving returns to the stock market.
Gold gave more than 50 percent returns in a year
Gold prices have reached record level due to increased demand from global central banks. This is the reason that gold has left behind the domestic stock market in terms of returning returns. In the last one year, this gold has given a return of 50.1 percent to investors, while the Sensex has fallen by 1.2 percent. Sridhar Shivram, the investment director of Enam Holdings, says that Central Bank Banks are continuing to buy gold and about 25 percent of the purchases are made from them. They are buying gold due to diversification compared to the ongoing tariff war and American treasures.
Gold defeated Sensex in 20 years
Gold has overtaken the Sensex over a period of three, five, ten and twenty years. Over a period of three years, gold has given an annual return of 29.7 per cent compared to 10.7 per cent of the Sensex. The metal increased by 16.5 per cent in five years, while the Sensex increased by 16.1 per cent. In 10 years, gold gave a return of 15.4 per cent as compared to 12.2 per cent of the Sensex, while in 20 years it gave 15.2 per cent returns against 12.2 per cent of the equity index.
Experts say that after years of dependence on dollars as the world’s major reserve currency, many countries are now actively reducing investment in gold and turning to it. Last week, gold at Comex reached the new all -time peak of $ 3,715.2 per troy ounce and silver crossed $ 43 for the first time in 14 years.
The Commodity Desk chief of Ventura Securities, NS Ramaswamy media report says that gold is not just a rescue against inflation, as the American Federal Reserve is preparing to start cuts in interest rates when inflation increases. ” Ramaswamy said that this month, the US Federal Reserve will continue to support the expectation of interest rate cuts and the uncertainty about President Donald Trump’s tariff policies will continue to support gold.
Will you get so much return in future?
Experts say that 38 percent increase in gold prices means that it may be more or less in the coming days. Nevertheless, investors should apply about 10-15 percent of their portfolio in gold. Shivram said in the media report that investors should continue investing 10 percent in gold in their portfolio as this is the only rescue in front of the currency, but you should not expect as much returns as much as last year.
What is the gold Sensex ratio?
Ramaswamy advises to invest 15 percent in gold and adopt a purchase strategy on a decline to reach this investment. Some analysts say that the sharp rise in the last one year has made a balance in favor of the shares. The analysis of the Sensex-Gold index of Edelweiss Mutual Fund shows that gold valuations are higher than shares. When this ratio falls below 1, the stocks perform better over the next three years, while the ratio above 1 shows that gold is likely to be better.
What is the rise in Sensex coming
In the report of Senior Vice President and Product, Marketing and Digital Head Niranjan Awasthi ET of Edelvis Asset Management, it says that the current ratio is 0.76, which is less than the long -term average of 0.96. He further said that when this ratio was below 0.8 in the past, the BSE Sensex gave a 3 -year -old advanced return of 25.12 per cent, while the gold return was 7.21 per cent.