{"id":51578,"date":"2024-05-16T00:53:04","date_gmt":"2024-05-16T00:53:04","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/05\/16\/gold-outshines-nifty-with-18-returns-over-5-years-times-of-india\/"},"modified":"2024-05-16T00:53:04","modified_gmt":"2024-05-16T00:53:04","slug":"gold-outshines-nifty-with-18-returns-over-5-years-times-of-india","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/05\/16\/gold-outshines-nifty-with-18-returns-over-5-years-times-of-india\/","title":{"rendered":"Gold outshines Nifty with 18% returns over 5 years – Times of India"},"content":{"rendered":"
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Mumbai: The yellow metal, which is in the middle of a bull rally, has given an annual return of 18% in the last five years that beats Nifty‘s 15% gain. However, the leading equity index still beat the yellow metal in terms of returns over several other time periods like one, three, 10 and 15 years, according to an ET report.
Over the seven-year horizon, the returns were nearly equal: Compared to Nifty’s compound annual growth rate (CAGR) of 15%, gold’s was 14%, Amrita Farmahan, CEO, Ambit Global Private Client said in the report.So far this year, globally gold prices have jumped about 20% to the current level of around $2,390\/ounce. In mid-April the price of the yellow metal had briefly breached the $2,400-level too, a life-time high figure.<\/p>\n
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In the domestic market as well, gold prices had jumped above the Rs 70,000\/10gm mark in early April and was almost on the verge of breaking above the psychologically important Rs 75,000 mark on the MCX during the month. Since then it has cooled a bit to the current level of about Rs 73,000.
There are a host of reasons for this rally in gold prices, Farmahan said. For one, many major central banks are on a gold buying spree. And the list includes China, India and Russia. After the US froze dollar-denominated assets of Russian origin after the start of the Ukraine war, global investors‘ trust on the greenback was shaken. This prompted several central banks to buy gold, often regarded as a global currency due to its acceptance. This in turn is driving up gold prices.
The rising debt pile of the US and the EU are also leading to higher demand for gold, since it serves as a safe haven asset amid concerns of currency debasement, she said. Another minor reason for the gold’s rally is the demand from Chinese investors as they have lost faith in real estate and stocks. And it’s expected the US retail investors will take a similar path, she said.<\/div>\n