Swarnadhaaraa FinServ
Swarnadhaaraa FinServ
February 26, 2025 at 01:01 AM
*Gold vs Equity: A Tale of Two Emotions During a Downturn* *Gold Investments: Volatility Often Goes Unnoticed* Gold has gained momentum over the past 1.5 years, delivering an *annualized return of ~9.1%* since August 2020. However, its journey has been marked by *high volatility*, with: -A *sharp 20%* decline in just 8 months (Aug 2020 – Mar 2021) -A *prolonged flat* period of 3 years (Aug 2020 – Oct 2023) with *zero* returns Yet, investors remain *positive during gold price corrections*, often seeing them as buying opportunities. *Equity Investments: Volatility Feels Magnified* Despite a *recent 17% correction*, the BSE 500 has significantly *outperformed gold* over the same period (as shown in the table). However, the investor *sentiment* in equities tends to swing in the opposite direction—when *prices fall, lose confidence, and fear takes over*. *Key Takeaway* Both gold and equities go through phases of *decline, stagnation, and growth*. While investors hold onto gold with patience, *equity investing demands the same discipline*. Stay invested and trust the process—over time, equities have consistently rewarded those who do. #investmentinsights #goldvsequity #financialdiscipline #wealthcreation
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