Gold rocked, Gold gave the most strong returns in FY 25, also beaten equity
New Delhi:
In the financial year 2024-25, gold has given the highest returns, leaving behind all the investment options. This information was given by the National Stock Exchange (NSE) on Monday. According to the NSE report, during this time, gold gave 41 per cent returns according to the dollar, which is the highest in all asset classes.
Why shine gold?
Investors made gold as a safe option due to increasing instability at global level. For this reason, there was a strong increase in gold demand. The main reason for the boom in gold is an increase in demand, it has reached the highest level of the last 15 years. The special thing is that due to the purchase and ETF inflow of central banks around the world for the third consecutive year, the demand for gold has been more than 1,000 tonnes.
How much return from equity?
While gold managed to give a return of 41 per cent, the NSE’s Nifty Index (NIFTY) could only give 5.34 per cent returns. However, in the long term, Indian equity has given better returns and has helped to create wealth. In the last 20 years, the Nifty has given the annual return of 14.4 percent by adding dividend, which is much higher than the long -term return of gold.
Boost came out of gold purchase of central banks
Central banks from all over the world have bought a large amount of gold to diversify their foreign reserve. According to the report, this trend is also shown in India. The Reserve Bank of India (RBI) has emerged as the third largest gold buyer in the world in the last three to five years. Now the gold portion in RBI’s foreign reserve has been more than 11%.
Jewelery demand decreased, investment increased
Due to increase in gold prices, the demand for gold jewelery has decreased, but investment has increased. Gold based ETFs have seen tremendous inflows worldwide including India. In the first quarter of 2025 alone, Gold ETF has a net inflow of $ 21 billion, or about 226 tonnes, which is the highest after the second quarter of 2020.
