Gold is a great way to protect yourself against the Nifty 50. A 30-year look at Gold vs. Nifty 50 In times of economic instability, the link between Gold and Nifty 50 has been the opposite of what it is now. Let's look at some old data to see how they did in the past: How Gold Has Done Over the Past 30 Years: Average CAGR: ~12% Important times for growth: During the 2008 financial crisis, gold prices rose by 27%, while Nifty 50 prices fell by 52%. 2020 COVID-19 Crisis: Gold went up 28%, but Nifty 50 went down 38% at first. Nifty 50 30-Year Performance: Average CAGR: around 12-14%. Key Growth Periods: 2003–2007. During the bull run, the Nifty 50 increased at a CAGR of almost 35%, while gold increased by around 15%. Post-2020 Recovery: The Nifty 50 recovered at a 20% CAGR, but gold gained modestly. Insight: Gold is an effective hedge in a balanced portfolio, outperforming during crises when the ...
Comments
Post a Comment