Gold and Sensex are both on a strong upward trend, but which one will make investors rich faster? Find out the latest returns and future predictions.
Gold and Sensex Show Strong Growth, But Which is Faster?
Investors are currently witnessing strong competition between gold and Sensex as both are showing impressive growth in 2023. While gold has outpaced the Sensex in returns since January this year, the Sensex has held its own in the longer run, performing better over the past year. Investors in both assets are now wondering, “Who will reach 1 crore first?” With the ongoing bullish trends in both markets, experts have weighed in on the future potential of these investment vehicles.
Five-Year Return on Gold: How Much Has It Grown?
Over the past five years, gold has provided excellent returns to investors. In September 2019, the price of gold was around Rs. 38,000 per 10 grams. As of now, gold has surged to approximately Rs. 75,000 per 10 grams. This means gold has increased by Rs. 37,000 in value, translating to an impressive 97% return in just five years.
Annual Growth Rate of Gold
Gold has delivered an average annual return of 15.54% over the past five years. The highest return during this period was seen in 2020, with an outstanding 34% growth. Following that, the COVID-19 pandemic caused a slowdown, leading to a 10% negative return the following year. However, gold quickly bounced back and has maintained its upward trajectory ever since.
Sensex: Outperforming Gold in the Long Run?
In terms of returns over the last five years, the Sensex has outshone gold. Back in 2019, the Sensex was trading at 38,800 points. Today, it stands at a remarkable 85,500 points, marking an increase of 46,700 points, or a 120% return in just five years. This puts the Sensex ahead of gold by 23%, making it the better-performing asset during this period.
Annual Growth Rate of Sensex
The Sensex has given an average annual return of 19.20% over the last five years. In September 2020, the Sensex posted its highest growth, a massive 58% increase compared to the previous year. While it did witness a 5% decline in the following year, it has since recovered and continues to climb steadily.
Future Predictions: Which Will Reach 1 Crore First?
Both gold and the Sensex have strong prospects for the future, but which one will hit the Rs. 1 crore mark first?
Experts in the stock market are optimistic about the Sensex, predicting that it will reach 1,00,000 points by December 2025. On the other hand, gold experts believe that gold will not take much time to reach Rs. 1,00,000 per 10 grams. They point to the Federal Reserve’s interest rate cuts and rising tensions in the Middle East as key factors that will drive up gold prices. Analysts are predicting that gold could hit the Rs. 1,00,000 mark by Diwali next year.
Gold and Sensex: Both Promising Options for Investors
With both assets showing strong returns and promising growth potential, it’s hard to choose a clear winner between gold and the Sensex. Investors may need to consider their risk tolerance and financial goals when deciding where to put their money. While the Sensex has the potential to grow faster, gold offers a hedge against inflation and market volatility.
