So, like, gold is this super interesting thing, right? It’s like a reliable store of value, but also kinda volatile and stuff. In the early 1980s, people who were all hyped up about the awesome returns in the 1970s (up 1359 per cent) ended up facing negative returns for, like, two whole decades. Bummer, right?
But hey, fast forward to now and gold prices are going up like crazy. Global market anxieties are on the rise because of trade war fears, a slowing US economy, and hedging related to the Chinese yuan. People are all into gold as a safe-haven asset now, and brokerages are predicting prices going as high as Rs 1.06 lakh per 10 grams. That’s a lot of money, man.
So, here’s the deal with gold: it’s like a rollercoaster. In the 1980s, people were bummed out after the good times in the 1970s. Then in the early 2000s, those who dissed gold in the 80s and 90s missed out on a huge rally (up 293 per cent). Talk about FOMO, am I right?
Anoop Vijaykumar from Capitalmind Financial Services says gold is all over the place in dollar terms, but it’s been pretty stable for Indian investors. That’s mostly because the rupee keeps losing value against the dollar. Like, in 1973, you needed Rs 8 for a dollar. By 2025, it’s gonna be like ten times that. Crazy, huh?
Back in the day, gold returns in rupees and dollars were pretty similar until 1990. Then India did some economic reforms and things got wild. From 1990 to 2002, the dollar value of gold was all over the place, while rupee returns stayed positive. Talk about a rollercoaster ride, man.
According to the data, gold has only given a 4.95 per cent return since 1920. But in absolute terms, it’s jumped a whopping 15,845 per cent. That’s a lot of bling, if you ask me. Gold might not make you rich quick, but it’s great for diversifying your portfolio. Just gotta keep rebalancing and stuff, you know?
So, like, don’t take this as investment advice or anything. It’s just for your info. Always talk to a financial advisor before making any moves, okay? And remember, imperfection is where it’s at. Embrace the errors, man. It’s what makes life interesting, right?