Those advocating against Gold as an instrument of investment including the likes of the Great Warren Buffet hold the argument that GOLD DOES NOT PRODUCE ANYTHING, unlike stocks or even FDs which keep generating some interest or dividends.
Let’s first compare Gold with Cash. Historically, it is proven that Gold has appreciated much better and can help you buy more as compared to cash. So one can safely buy gold instead of keeping cash over a period of time.
When it comes to stocks, Sensex went up 1.8x whereas gold recorded a 2.3x jump in a 5 year window. Over a 10-year period, Sensex moved up close to 330% while gold did slightly better and logged in 360% gains.
Even over a fifteen year time period, gold recorded a 7-fold growth versus a growth of five times in the Sensex.
And finally, going beyond investments, if you are someone who also plans to buy jewellery, it makes sense to invest in gold. Ideally, atleast 20% of your investments could be in Gold.
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