Here’s how much return gold has given since India’s independence
Independence Day 2021: While whole nation is celebrating 75th Independence Day today, gold investor will have some extra reason to celebrate. The precious metal has delivered more than 54,000 per cent return to the gold investors in the last 75 years as gold price post-independence has jumped from ₹88.62 per 10 gm levels to ₹48,000 per 10 gm mark in the retail bullion market. According to gold experts, the bullion metal is an investor’s haven, when other investments like equity, bond, etc. becomes risky as we witnessed in recent Covid-19 pandemic. They said that gold price has witnessed sharp rise post-2008 global economic slowdown.
Gold return in last 75 years
Speaking on the gold investment pattern and its price rise over the years; Anuj Gupta, Vice President — Commodity & Currency Trade at IIFL Securities said, “Gold has been a favourite investment option among Indians and it was a lucrative and revering investment instrument when India became an independent nation on 15th August 1947. The average gold price for the year 1947 is around ₹88.62 per 10 gm and today it has peaked up to near ₹48,000 per 10 gm in the retail bullion market — logging around 54,000 per cent return post-independence. However, importance of gold investment was realised after the 2008 global economic slowdown. People around the world come to know that gold is an investor’s haven when other investments like equity, bond, etc. start nosediving. Till 2008, gold price was at around ₹12,500 per 10 gm but after that there was steep rise in gold investment globally. So, gold price has jumped from ₹12,500 per 10 gm in 2008 to ₹48,000 per 10 gm in today’s the retail bullion market — logging around 272 per cent in the last 13 years.”
Anuj Gupta of IIFL Securities said that gold investor must keep in mind that the precious metal gives at least 9-10 per cent return if the investment is for the period of 9-10 years. He said that an investor looking to invest in gold for long term, should buy gold at any price without looking at its outlook as overall it will give 9-10 per cent return in the long term. He advised gold investors to look at other than physical gold options like gold ETF, gold bonds, etc. as it gives them some extra luxury like freedom from security, etc.
Gold price outlook
Whether one should invest in gold today when gold price is at near 4-month low; Sugandha Sachdeva, Vice President-Commodity and Currency Research at Religare Broking Ltd said, “Outlook for gold in the long term remains positive. The level of $1680 per ounce in international markets is a sacrosanct cushion area for gold and is holding well for the past six months. At MCX, ₹44,700 to ₹45,300 per 10 gm is a good accumulation zone for long-term investors. One should start buying as and when the yellow metal comes in this range as the precious bullion metal is expected to reverse course after this time-wise and price-wise correction in coming months.
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