Gold vs Nifty 50: Physical gold is a friend that comes in handy in tough times, when equities are down or when inflation weighs heavily on your pocket, it proves to be the best.
In the last 5 years, equity investment has multiplied the wealth of many investors. It has created rags-to-riches stories, established big names, and given the common man opportunities to invest and benefit from India’s biggest businesses.
Investors investing in gold and the Nifty 50 are looking for high returns. The question is which of the two will give better returns? Can investing in gold make you rich in 5 years? Or can Nifty 50 fulfill this dream? Both investments are not linked to each other and can give different results in the short term and long term. But the question remains that if you invest Rs 5 lakh, then which will give you more return in the next 5 years, let’s know.
Gold prices have also risen in the last few years amid growing economic uncertainty across the world. On the other hand, Nifty 50, which represents the largest 50 companies in India, has given only a 4.68 percent return in 1 year, but has shown steady growth in 5 years.
For you, which would have proved better in terms of high returns – physical gold or Nifty 50? If you had invested Rs 5 lakh in any one of these 5 years ago, where would you have been in a better position? Let us understand this through comparisons, which of these has increased the wealth of investors faster in the last 5 years?
Price of physical gold 5 years ago: We are taking the price of 22 carat gold in Mumbai 5 years ago and today. On July 7, 2020, the price of gold in Mumbai was Rs 4,626 per gram. Today, the price of the same quality of gold is between Rs 8,861 and Rs 9000 per gram in the same city. In percentage terms, the price has increased by 91.54 percent in 5 years. An investment of Rs 5 lakh in physical gold 5 years ago has become Rs 9,57,700 today.
Performance of Nifty 50 Index in 5 years: Nifty 50 Index closed at 25,522 today (8 July 2025). The growth of the index in 5 years is 135.76 percent. If you had invested Rs 5 lakh 5 years ago, you would have got a return of Rs 11,78,800 from the Nifty 50 Index.
This shows that despite beating the Nifty 50 Index in 1 year, gold is well below the major index returns over a 5-year period. So now you know in which investing you can become rich.
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