“All that glitters is not gold.”

– William Shakespeare

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All that glitters is not gold and this maybe true for gold itself….for over a decade now.

Lets see the returns of Gold Vs CNX500 in the chart below :

As shown in the chart above, since around 2000, Gold gave a return of 861% while for the same period the broad market index CNX500 gave a return of 2800% – a whopping 3.25x times !

This wasn’t the case forever as our ancestors hoarded gold since time immemorial which changed in Aug-2013 from when the capital markets shot up and started giving better returns.

Check the “golden cross” in the chart above.

Since 2013, gold has lost its lustre and has given an ROI of just 83% while CNX500 gave a return of 450% – 5.42X in 11 years.

Despite this, most households in India and many investors during war time situations go after gold as the safe haven but is it really safe and one to hold on forever ?

Wouldnt it be better to hold on to cash or move your money out of capital markets into other asset classes during unfavorable times instead of going with both “time + value” decay of your money by getting into gold?

Something to not just think about but time to move out of gold and get into capital markets!

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