Gold vs Sensex: Which gave better Returns in Last 10 years?

There are many investment avenues in India in which in investor can invest to reap high returns. These include metals, mutual funds, shares, fixed deposits etc. Each one of them have their own sets of advantages and disadvantages. Among these instruments, two of the most common ones are Gold and Sensex . While both of them carries a fair bit of risk, they have the potential to provide inflation-beating returns over the time.While both of them carries a fair bit of risk, they have the potential to provide inflation-beating returns over the time.So, in case you’re a potential investor looking to choose between gold or share market, this article can help you out. Here. We’ve tried to conduct a comparative study by evaluating the returns provided by these two instruments during the last 10 years.

During the last decade, gold has performed slightly better as compared to the Sensex. While BSE Sensex has seen an appreciation of 130 percent during the last 10 years, gold has appreciated by 134 percent. On 7thSeptember 2019, gold touched its highest point of Rs. 40,280 per 10 grams. On 1stJanuary 2010, gold was being sold at the rate of Rs. 16,650 per 10 grams whereas, 10 years later, the value of same amount of gold is approximately Rs. 39,000.

During the last 10 years, Sensex has largely moved upwards barring the two years – 2011 and 2015 – when it gave negative returns. While in 2011, Sensex saw a plunge of 25.1 percent in is value, in 2015, it fell by 5 percent. Talking about gold, it provided negative returns in three out of last 10 calendar years.For three consecutive years – 2013, 2014, and 2015 – the value of gold saw a decline by 4.9 percent, 8.2 percent, and 6.2 percent respectively. However, in the remaining 7 years, the value of gold rose sharply between 5.2 percent in 2017 to 31.7 percent in 2011.

In absolute terms, if you would have invested Rs. 1 lakh in gold in 1stJanuary 2010, your investment would have appreciated to approximately Rs. 2,40,000 by today. On the other hand, if you would have invested Rs. 1 lakh in Sensex on 1stJanuary 2010, the value of your investment today would have been Rs. 2,30,918, which is nearly Rs. 10,000 less than the returns provided by gold.Therefore, it can be said that the gold investors have made slightly better returns than the investors in stock market during the past decade.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.