Yesterday’s market crash has wiped out many months of investment gains. But the Sensex is still 23.8% above its level last year. Not bad, you’d say.
But look at the returns from another asset class over the past year—gold. It, too, has given investors a return of around 23%. When was the last time you remember gold proving to be as good an investment as Indian stocks? And in case stocks continue to slide, we’ll soon have a situation where gold buyers boast better returns than equity investors.
Surprised? You needn’t be. The yellow metal has already outperformed many global equity indices. Growing inflationary fears have pushed money towards gold—which is a good hedge against high inflation. Gold funds have also attracted serious money of late.
So, while your eyes are glued to the stocks ticker on your TV screen, take an occasional look at gold prices as well.