GOLD VS STOCKS: Which Should You Choose This Diwali?

Every Diwali, Indian households face the same investment dilemma: should one buy gold, a symbol of wealth and security, or put money into stocks, which promise long-term growth and prosperity? A closer look at data from the past 15 years provides some surprising insights into how these two asset classes have fared and what investors should consider this festive season.

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Gold's Strong Run Over 15 Years

Gold has historically been seen as a safe-haven asset, and the numbers back that up. If an investor had consistently invested Rs 10,000 every Diwali since 2010, the total contribution of Rs 1.5 lakh would today be worth around Rs 4.47 lakh. That's a growth of about 4.5x over 15 years.

In comparison, the same investment in the Nifty 50 index would have grown to Rs 3.72 lakh, or about 3.7x. Clearly, gold has had the upper hand over this period, outperforming equities by a noticeable margin.

Performance Over 5 and 10 Years

Zooming into a shorter period shows that gold has maintained its edge:

This consistency reflects gold's ability to surge during periods of global uncertainty, often when equities falter.

Year-Wise Comparisons: The Numbers Speak

A close look at how a onetime Diwali investment performed in different years highlights the contrast even more clearly.

If an investor had put Rs 10,000 into the Nifty 50 in 2010, the investment would now be worth around Rs 39,180, whereas the same amount in gold would have grown to about Rs 54,200. Similarly, an investment made in 2015 would have grown to Rs 31,630 in Nifty compared with Rs 41,340 in gold.