Gold outperformed the stock markets in 2023 so far, with its overall return surpassing that of the Sensex and Nifty 50. While the 24-carat gold rate has increased from Rs 55,200 to Rs 60,000 from January 1, 2023, to March 31, 2023, the Sensex and Nifty 50 have dipped from Rs 60,840.74 to Rs 58,991.52 and from Rs 18,105.30 to Rs 17,359.75, respectively, during the same period.
This means that gold has given an overall return of more than 8 percent, while the profits of the Sensex and Nifty 50 have turned negative in the current year so far.
How gold outperformed Sensex, Nifty 50
In the current economic climate, investors are turning towards gold due to the fears of a financial crisis that are keeping them away from the stock markets.
They are worried about turbulence in the banking sector. Investor sentiment has remained shaky despite Swiss regulators’ intervention to protect the global financial system.
Meanwhile, gold prices in the last financial year 2022-23 jumped a massive Rs 8,000 in domestic markets from Rs 52,000 to Rs 60,000, which is a 15 percent return, beating all other asset classes.
Gold rate may touch Rs 68 thousand
The demand for the safe haven increased due to the banking-industry turmoil and concerns that the US economy may tip into a recession.
Many experts predict that the yellow metal is likely to touch Rs 68,000 in the current financial year, giving a return on investment (ROI) of 10-15 percent in FY24.
With the current uncertainty in the stock markets, investors are looking for a reliable and safe investment, and gold seems to be the right choice.