Gold vs Nifty
Stock market is the first thing that comes to mind when it comes to investment! Experts say that you can earn good returns from the stock markets in the long run.
But in recent times Pasidi is also giving tough competition to the stock markets. Moreover, it is generating returns beyond the market in many cases. The same happened in the first half of 2024! In terms of returns, gold outperformed the Nifty in the first six months of 2024. Nifty 50 has given returns of 10.5 percent till June 2024. But gold alone gave a return of 13.37 percent. In rupee terms, the MCX gold contract has yielded around Rs 8,400 per 10 grams of gold during this period. According to various reports, the July gold futures touched an all-time high of Rs 74,777. Now it is close to Rs 71,800. The Nifty has also risen massively in the last month. However, Gold could not get a run!
Gold Vs Nifty…
Tensions in the Middle East, growing demand from China and expectations of a US Federal Reserve interest rate cut have boosted gold prices. Comparing the performance of gold and Nifty in the first half of the last five years (2019-2023), gold has given positive returns on four occasions. The highest return in 2020 is 13.71 percent and the lowest in 2022 is 0.59 percent. But gold has given a negative return of 3.63 percent in 2021.
On the other hand, Nifty has given positive returns in three out of five years. 2019, 2021, 2023 saw an increase in the first half. In 2022, the Nifty posted a five-year high of over 12 percent returns. Nifty lost 15% in 2020 and 9% in H1 2022 due to Covid-19 lockdown.
ALSO CHECK: Multibaggar Stock; Rs 10 thousand to Rs Multibaggar penny stock made 37 lakhs!
Prithviraj Kothari, Managing Director, Riddisiddhi Bullions Limited (RSBL), National Head, IBJA, said, “Gold is currently strengthening between Rs 71,000-72,000 after an 18% rally between February-April.”
But there is some stability in the prices of paddy, which increased drastically till last month. Uncertainty over Fed interest rate cut continues. Demand from China is also decreasing. Kothari predicted that gold will fall to Rs 70,000 in the next 1-2 months due to weak fundamentals and technical reasons. However, a new record high could be reached in the last quarter of 2024. Riddisiddhi Bullions indicated that to reach the target of Rs.75,000 and Rs.77,000 by the end of this year, buying pressure may be seen below Rs.70,000.
That is why you should invest not only in the stock market but also in gold. Doing this will diversify the portfolio. But buying physical gold and gold jewelry and considering it as an investment is not correct. It should be considered under investment only when investments are made in things like gold ETF, sovereign gold bond.