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Gold vs Nifty 50: Physical gold is a foul-weather friend, a safety net when equity is down or when inflation is hitting your finances hard. Equity investment has multiplied wealth for many investors in 5 years. It created rags-to-riches stories, established larger-than-life figures, and provided opportunities for a common man to invest and benefit from India's largest businesses. Investors in gold and Nifty 50 seek high returns. Both investments are not interrelated and may produce results differently in the short and long terms.

Gold's value has increased amid global uncertainty in the last few years.

On the other hand, Nifty 50, which represents India's largest 50 companies with the highest market capitalisation, has given just a 4.68 per cent return in 1 year, but it has delivered stable growth in the 5-year time frame.

For you, which would have been the better option in terms of higher return—physical gold or Nifty 50?

Had you invested Rs 5 lakh in either of them 5 years ago, where would you have been better off?

Through comparisons, know which of the two has grown investor wealth faster in 5 years.

We are taking the 22-karat gold price in Mumbai 5 years ago and today.

Gold's price in Mumbai on July 7, 2025, was Rs 4,626 per gramme.

The price of the same quality of gold in the same city today is Rs 8,861 per gramme.

In terms of percentage, the 5-year price rise is 91.54 per cent. 

The estimated value of Rs 5 lakh invested in physical gold 5 years ago is Rs 9,57,700 today. 

The Nifty 50 index closed today (July 7, 2025) at 25,461.30.

The index's growth in 5 years is 135.76 per cent.

At 135.76 per cent absolute return in the 5-year time frame, a Rs 500,000 investment in the Nifty 50 index has turned into Rs 11,78,800.

It shows that despite pipping the Nifty 50 index in the 1-year period, gold is way below the headline index return in the 5-year period. 

(Disclaimer: These are projections. Our calculations may vary slightly from actual returns.)

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