With both the Sensex and gold trading near historic highs, investors face a tough choice while balancing their portfolios. The global uncertainties and sustained market volatility are only adding to the investor’s dilemma. As these two popular asset classes are trading at elevated levels, here is a step by step analysis of the gains over last 1 year and the relative return from each asset class
Sensex nears 80,000 with strong 1-year gains
The Sensex has shown significant strength, currently trading close to the 80,000 mark. Over the past year, the Index surged by over 25%, adding 16,111 points to its value. In 2024 alone, year-to-date returns have reached 11.02%, reflecting the resilience of Indian equities in a volatile global economic environment.
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The benchmark index also achieved a lifetime high of 85,978 points in September, showcasing robust investor confidence in Indian markets, driven by strong corporate earnings, economic growth, and foreign investment inflows.
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Gold outshines as a safe haven savings instrument
Gold, meanwhile, continues to hit record levels, with 24-carat prices surpassing Rs 80,000 per 10 grams. Year-to-date, gold prices have surged 31%, an increase of approximately Rs 14,300 per 10 grams, driven by rising demand amid inflationary pressures and geopolitical uncertainties.
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Today, on the Multi Commodity Exchange (MCX), the December futures contract for gold hit an all-time high of Rs 79,635 per 10 grams. The metal’s enduring appeal as a hedge against economic instability remains strong, particularly with rising tensions in the Middle East, energy concerns, and interest rate hikes by global central banks adding to investor caution.
Experts on Investment Outlook
Commenting on the investment outlook Rochak Bakshi Founder & CEO of True North Financial Services said that the Indian stock markets and gold have both given good returns to investors over the past one year.
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