Gold vs Nifty 50: 2000% or 1470% returns! Zerodha's Nithin Kamath compares, recommends THIS to investors

Discount brokerage firm Zerodha's co-founder Nithin Kamath has pointed out that gold has delivered better returns than Nifty 50 since 2000.

Taking to the social media platform X, Nithin Kamath wrote, “I'm cherry-picking the date, but it's kinda crazy that since 2000, gold seems to have generated higher returns than Nifty.”

What does data say?

Kamath clarified his point by sharing data from the last 25 years, comparing the performance of Nifty 50 and gold. The data showed that gold has grown by 2000 per cent, while the Nifty 50 index surged by 1470 per cent during this period. In 2025, gold gave an 18 per cent return, while the Nifty LargeMid 250 lost 6 per cent.

Is it an opportunity for gold ETFs?

According to Kamath, with the halt in the issue of sovereign gold bonds, Gold ETFs offer a prime opportunity for investors seeking gold exposure and diversification.

“We couldn't time the launch of the GOLDCASE, @ZerodhaAMC's Gold ETF any better😬 First, gold prices started shooting up and then the stopping of sovereign gold bonds (SGBs). Now that SGB issuance has stopped, Gold ETFs are probably the best way to get exposure to gold,” Kamath stated.

Although, as per the Zerodha co-founder, the factors influencing gold prices remain unclear, its performance has been highly favourable for Indian investors.

“Gold has been kind to Indian investors and has provided some diversification benefit. Nobody can explain what makes gold prices move, but it seems to work,” he added.

Gold prices hit a record high

Gold prices have surged nearly 27 per cent over the past year, 17 per cent on a year-to-date (YTD) basis, and 7 per cent last month, Mint reported on April 3.

In the first quarter of 2025, gold prices rose 19%, the biggest quarterly gain since 1986. Since the last two years, spot gold prices have risen 60%. Prices on MCX surged from ₹59,612 per 10 grams to the current level of ₹90,986, a 53 per cent gain for domestic market investors.

Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.