In the investment world, both gold and stock market are big names. But when it comes, it is more beneficial to invest in which people often have a dilemma in their minds. Famous investor Warren Buffet’s views on this are very interesting. He believes that “gold is only useful during fear” and “it does nothing, just sees you”, that is, neither gives dividend nor productive asset. But the figures tell a different story. Let us see who was ahead in gold and stock market collision on the basis of recent data.
Gold shine in the early months of 2025
Looking at the figures from the first five months of this year i.e. from January to May 2025, Gold has given a return of 16.3 percent. On the other hand, India’s major index Nifty 50 has increased only 4.3 percent. This simply means that if an investor had invested 100 rupees gold and 100 rupees in NIFTY in December 2024, then the investment with gold would have been 116.3 rupees today and the share of Rs 104.3.
Gold increases in uncertainty
One of the main reasons for the rising prices of gold is global instability. America’s trade policy, confusion over tariffs and global economic uncertainties have created an atmosphere of fear among investors. And whenever the fear increases, the glow of gold increases.
10 years figure also in favor of gold
Now talk for a long time, that is, if someone had invested 100 rupees gold and 100 rupees in stocks 10 years ago, then today Gold would have given an average of 12.9 percent annual return, while the stocks would have given an annual return of 10.6 percent.
During the Covid-19 epidemic, Sona had gone far ahead of the stocks, although the stocks later recovered. Nevertheless, it is clear from the data that even in the long period, gold has left the stock market a little behind.
Was Warren Buffet wrong?
actually not. Warren Buffet says that gold is an asset based on “fear” and this is correct. Asad Dossani, who is a professor of finance at Colorado State University, says that investors are always afraid of something, whether it is an economic recession, political crisis or a threat to an epidemic. This fear turns investors towards gold and that is why gold remains a reliable investment continuously.
Then where to invest, gold or stocks?
It depends on what kind of investor you are. Gold is a safe option for you if you want to avoid risk. But if you want more returns in the long term and can bear ups and downs, then the stock market is also a good option. Experts recommend that any portfolio should balance both gold and stocks, so that the risk is also low and returns can also be balanced.
Disclaimer: (Information provided here is being given only for information. It is necessary to tell here that the investment market is subject to risks. Always consult expert before investing as an investor. Never is advised to invest money from Abplive.com.
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