Gold vs Stock / Stock market or gold, which will give the highest returns in the coming days?

Gold vs Stock: Gold has given safe and stable returns to investors in the last few years. Especially after Covid-19, when the stock market witnessed both a bull run and a bear slump, gold performed better. But the question is, will gold continue to give good returns in the future or will the stock market overtake it? Let's understand the depth of this debate.

Stock Market vs Gold: Changing Investment Strategy

According to a recent report by Edelweiss Mutual Fund, the stock market may perform better than gold in the coming three years. This report states that stock market returns depend on economic growth, while gold is a safe investment option, which people prefer more in times of uncertainty.

If we look at historical data, whenever the global economy has expanded, the stock market has performed well. The reason for this is that during economic expansion, the earnings of the corporate sector increase, which increases their share prices and investors get good returns.

Important historical milestones and growth of stock market

1991: Globalization era

Economic liberalization began in India and the stock market saw new heights. During this period, investors like Harshad Mehta, Rakesh Jhunjhunwala and Radhakishan Damani made huge profits. SEBI was made more powerful and the Indian stock market became more transparent.

2008: Global economic recession

During this period, markets around the world were in decline, but the strength of the Indian economy took control of the market. The Sensex made a comeback in 2009 itself and this decade proved to be beneficial for investors. The Tata Group strengthened its position globally by acquiring Corus and Jaguar Land Rover.

2020: Covid-19 and digital revolution

Digital and technology companies saw a tremendous boom during the pandemic. The business of Reliance Jio, digital payment systems and online retail companies increased. There was a flood of IPOs and investors made huge profits.

Stock market prospects in the coming years

Now the world is entering the era of the fourth industrial revolution. Solar energy, electric mobility, artificial intelligence and sustainability products will play a major role in this. These sectors are growing rapidly and this will give new expansion to the stock market.

Is gold still better for investment?

Although the future of the stock market looks bright, gold will always remain a safe investment. Whenever there is volatility in the market, investors turn to gold.

Conclusion: Where to invest?

• If you are expecting long-term and high returns, the stock market may be a better option.
• If you want security and stability, gold will be a good option.
• Investors should create a balanced portfolio that includes both.

The stock market may give better returns in the next three years, but gold will always provide security in times of economic uncertainty. The right investment strategy will be the one that is according to your financial goals and risk appetite!