Invest in Gold or Stock Market: Whenever investors invest money in something, their objective is the same – to earn more profits in less time. Diwali is near, and in such a situation, this question must be arising in the minds of investors as to where they should invest in this festive season, so that the deal proves beneficial for them.
In India, gold has not only economic but also religious and social importance. On the other hand, a large number of people also invest in the stock market, which is considered to give better returns in the long run. But when it comes to choosing the better option between the two – who is ahead?
rising shine of gold
Amidst geopolitical tensions, global economic turmoil and trade uncertainties, gold prices have seen a tremendous rise in the last one year. This is the reason why gold has given returns of almost 50 percent to investors in just one year. For the first time in April, the price of gold had crossed Rs 1 lakh per 10 grams, and now it has gone above Rs 1.22 lakh.
On the contrary, the stock market has seen huge fluctuations during the last one year. US tariff policies and global trade tensions have put pressure on the market. Many big companies have made layoffs and there is slowdown in the IT sector. Under these circumstances, the stock market has not proved to be very attractive for investors so far.
expert opinion
On gold vs equity investment, market experts say that gold may be giving better returns in the short term, but the situation may be different in the long term. He says that it is not necessary that if gold has given excellent returns in one year, then that trend will continue in future also.
Generally, the shine of gold increases in times of global instability or recession. After the rapid rise of gold in the last two years, the question now arises whether its prices will continue to rise at the same pace in future? At the same time, companies investing in the stock market not only give dividends to the investors, but with a strong economy, they also have more growth prospects.
If you are looking for a safe investment, gold can prove to be a stable option. But if your goal is long-term wealth creation, the stock market — despite the risks — holds more promise. Therefore, in the opinion of experts, it would be wise to keep a balanced mix of both in the portfolio.
Also read: Got share or not? How to check the allotment status of Tata Capital IPO

