1. During last 38 years 4 months (from 31-3-1981 till 2-8-2019), gold price has risen from Rs.1670/10gm to Rs.36700/10 gm, thus giving 8.4% average annual returns.
2. During the same period, on the other hand, Sensex itself has risen from 170 to 37110, thus giving 15.04% average annual returns.
3. Gold has been considered a safe asset as it has managed (barely) to tide over 7% average annual inflation during this period.
4. But this capital protection alone doesn't make it a long-term asset for wealth creation to meet various lifetime goals like children's higher education, their marriage and settlement, own retirement plans, etc.
5. As these goals exhibit greater inflation, a higher growth in lifetime savings is needed to achieve them, hence long-term equity investment is essential during one's earning years.
2. During the same period, on the other hand, Sensex itself has risen from 170 to 37110, thus giving 15.04% average annual returns.
3. Gold has been considered a safe asset as it has managed (barely) to tide over 7% average annual inflation during this period.
4. But this capital protection alone doesn't make it a long-term asset for wealth creation to meet various lifetime goals like children's higher education, their marriage and settlement, own retirement plans, etc.
5. As these goals exhibit greater inflation, a higher growth in lifetime savings is needed to achieve them, hence long-term equity investment is essential during one's earning years.