Do you really get more returns from investing in gold than the stock market? Understand this from the data:

News Topical, Digital Desk : Both gold and stock market are big names in the world of investment. But when it comes to which one is more profitable to invest in, people often have a dilemma. Famous investor Warren Buffet's views on this are very interesting. He believes that "gold is useful only in times of fear" and "it does nothing, just watches you" i.e. it neither pays dividends nor is it a productive asset. But the figures tell a different story. Let us see who was ahead in the competition between gold and stock market based on the recent figures.

Gold shines in the early months of 2025

If we look at the data of the first five months of this year i.e. from January to May 2025, gold has given a return of 16.3 percent. On the other hand, India's major index Nifty 50 has been able to increase by only 4.3 percent. This simply means that if an investor had invested Rs 100 in gold and Rs 100 in Nifty in December 2024, then today the investment in gold would have been Rs 116.3 and the investment in shares would have been Rs 104.3.

Gold's popularity increases in uncertainty

One of the main reasons for the rising prices of gold is global instability. America's trade policy, confusion over tariffs and global economic uncertainties have created an atmosphere of fear among investors. And whenever the fear increases, the shine of gold increases.

10 year data is also in favor of gold

Now let's talk about the long term, i.e. the last 10 years. If someone had invested Rs 100 in gold and Rs 100 in stocks 10 years ago, then today gold would have given an average annual return of 12.9 percent, while stocks would have given an annual return of 10.6 percent.

During the COVID-19 pandemic, gold had outpaced stocks by a lot, although stocks later recovered. Still, it is clear from the data that even in the long term, gold has slightly outperformed the stock market.

Was Warren Buffet wrong?

Not really. Warren Buffett says gold is a “fear”-based asset, and he is right. Asad Dossani, a finance professor at Colorado State University, says investors are always afraid of something, whether it is an economic recession, a political crisis, or the threat of a pandemic. This fear drives investors to gold, and this is why gold continues to be a reliable investment.

So where to invest, gold or stocks?

It depends on what kind of investor you are. If you want to avoid risk, then gold is a safe option for you. But if you want higher returns in the long term and can tolerate fluctuations, then the stock market is also a good option. Experts advise that there should be a balance of both gold and stocks in any portfolio, so that the risk is low and the returns are also balanced.