For investors who feel they missed the recent rally in precious metals, market experts suggest focusing on long-term data over short-term price movements.
Anuj Gupta, director at YA Wealth Global, noted that the enduring positive trend in precious metals often outpaces equities over multi-year cycles. “It seems that the trend of gold and silver are in a positive trend since the last couple of years, however, the trend of equity means Sensex is also in a positive way,” Gupta stated.
He provided a data point on long-term averages, “The only difference is that the average return of Sensex in the last 10 years is almost 11.36%, but the gold average return is 14.81% and silver average return is 13.82%.”
This comparison clearly shows that over a decade, both gold and silver have comfortably outperformed the Sensex on average returns.
As Gupta summarises, the long-term performance figures are “also showing the benefit of diversification in different asset classes”. This principle allows investors to cushion their portfolios against cyclical downturns, when stocks are volatile, gold often rises, and vice-versa.
