When investing legend Nikhil Kamath tweeted, “The crazy thing about gold is these returns are on back of significantly lower volatility…”, he wasn’t exaggerating. Gold has quietly been outperforming stocks in major global markets—not just in terms of returns, but also by offering a much smoother ride for investors.
Gold vs. Stocks: The Numbers Speak
A recent analysis comparing equity and gold returns over 24 years across multiple countries shows a surprising trend. While Indian equities have delivered a marginally higher CAGR (13.4%) than gold (12.5%), globally, the yellow metal has been a standout performer:
- In Japan, gold outperformed equities by 6.7%
- In Brazil, by 6.4%
- In the UK, by 6.3%
- In France, by 5.1%
Even in the US, where stocks have historically dominated, gold still managed to outpace equities by 1.6%
What makes this even more remarkable? Gold has achieved these returns with far less volatility.
Why Does Lower Volatility Matter?
Volatility is essentially the rollercoaster effect of investing—the sharper the ups and downs, the harder it is to stay invested. While Indian equities have historically offered higher returns, they’ve also been far more turbulent. Gold, on the other hand, has provided competitive returns with 50% less volatility.
This isn’t just a theoretical advantage. Every time Indian equities have crashed by 20% or more, gold has surged 10–30%, acting as a natural hedge against market downturns.
The Future of Gold: Is It Still a Smart Bet?
With global uncertainties, inflation concerns, and central banks increasing their gold reserves, many experts believe the metal is poised for further gains. If history is any indicator, gold isn’t just a relic of the past—it’s an asset that could continue to shine in the future.So, the question isn’t just whether gold is a good investment. It’s whether you can afford to ignore it.
