Silver, Gold Outshine Equities With Better Returns

In a double-whammy for investors, stocks and gold failed to generate positive returns last year.

NEW DELHI: Gold and silver have been shining bright in terms of adding to the investors' wealth compared with the other asset class -- stocks -- so far this year.

Gold and silver have surged by 16.18 per cent and 15.61 per cent, respectively, in 2016.

On the other hand, the 30-share Sensex has declined by 1.15 per cent during the same period.

Sensex plunged to its one-year low level of 22,494.61 on February 29. At present, the bluechip index is down 14 per cent from its all-time high of 30,024.74 hit on March 4, 2015.

According to the experts, gold outperforms other asset classes during weak markets as investors indulge in safe haven assets.

Market sentiment was hit mostly by volatility in crude oil prices and concerns over the health of the Chinese economy.

However, the post-Budget rally in stock market in March helped recover some of the losses.

Gold prices have risen to Rs 29,500 per 10 grams from Rs 25,390 per ten grams on March 31, 2015, and silver from Rs 33,300 per kg to Rs 38,500 per kg.

A firm global trend and pick up in buying by jewellers and retailers amid wedding season demand have led to surge in gold and silver prices in the recent times.

Historical data shows gold has given positive returns in 12 out of the last 15 years.

In a double-whammy for investors, the two major asset classes -- stocks and gold -- failed to generate positive returns last year.

However, in 2014, the stock markets had outperformed gold and silver for the third year in a row with much better returns for the investors.

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