Equity is not a Villian and Gold is not an Hero

WhatsApp Made Gold the Hero — But Data Tells Something Else 

This Deepawali, more than jewellery stores, Gold is shining brighter in Whatsapp forwards claiming “Gold has beaten Equity!”

You must’ve seen that viral post —
“Gold has beaten equities in the last 20 years.”
“Indian housewives have outperformed fund managers.”

Catchy yes…
But is it correct? Hmm… Let’s explore.

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BULLISH ON SILVER : 

Before going ahead, for the regular readers to this blog.. you would have noticed we have very very bullish on SILVER since last 3 years and indeed Silver has given amazing returns and has even beaten Gold. 

Gold is in its Multi-Year Mega Bull Run. Equity, meanwhile, has been through a year of consolidation. So, comparing an asset at the peak of its cycle with another that’s cooling off is like comparing a Diwali cracker’s sparkle to the steady glow of a diya — one’s flashy, the other lasts.

Yes. Gold ‘may’ have given 18k returns in last 20 years but remember its  a *consumption asset* story — not an *investment* one.

You don’t “book profits” from your mangalsutra or bangles.
Try selling 5g from your chain — not practical, right?
Gold is bought, stored, admired… but rarely monetized. It’s like your home — so even if Gold becomes 10x, you still need to *wear it or store it*, not spend it.

And Selling part of Gold is even tougher. Try selling 5g from your chain — not practical!

 

Now, let’s look at this October 2024 chart. (about 1 year back) when Equity was in the Peak of Bull Run….

The same ₹10,000 in an Gold had grown to around ₹37 lakh in 40 years.
But in Equity Mutual Funds, it had became over ₹2.6 crore!
That’s the power of compounding + business growth — something no metal can match.
So, cherry-picking data is incorrect.

Even 6 months back (April 2025) (chart attached) —

Indian equities had multiplied ~16x, still beating gold handsomely!
Over 40 years? Let’s not even talk — Equity wins hands down.

So, please… don’t cherry-pick timeframes.
In any 20–40 year rolling period, Equity wins hands down.

 

LIQUIDITY : 

Biggest difference between Gold and Equity Mutual Funds is that when it comes to Equity Mutual Funds… you can …

• Sell anytime during market hours.
• Sell any quantity, whether it's ₹500 or ₹5 lakh.
• Monetize at will and have the cash in your bank account in 1-2 days.

An "investment" you can't easily sell isn't an investment; it's a belonging.

Gold has given exceptional returns due to various factors like Geopolitical fears, massive central bank buying showing its power as "SAFE-HAVEN ASSET". And Equity is struggling against economic headwinds but the fundamantal, long term roles of both assets havent changed  and we continue to advocate that

EQUITIES IS FOR WEALTH CREATION

GOLD IS FOR SAFETY PURPOSES 

So, let gold light up your Diwali —

but let equity light up your future.

So let’s not glorify an asset just because it’s shining today.
Markets move in cycles — and soon, the same headlines will flip:
“Fund managers beat gold — again.”

#DontRetireRich

 With Warm Regards,

Srikanth Matrubai

 

 

All the best,
Regards,
Srikanth Matrubai

MUTUAL FUND DISTRIBUTOR

REBALANCE VOLATILITY CERTIFIED COACH

Srikanth Matrubai, Author of the Amazon Best Seller DON'T RETIRE RICH

You are strongly encouraged to consult your financial planner before making any decision regarding this investment. The views expressed here are the author's personal views and should not be interpreted as a recommendation to invest/avoid.

 

Srikanth Matrubai Author of the Amazon Best Seller DON'T RETIRE RICH

Do read the book and give your valuable feedback and request you to post positive comments on Amazon. https://amzn.to/3cHUM6M/ 

You can purchase the book on Amazon and Flipkart 

For the best of ideas on where to invest to create Mountains of Wealth 

join my TELEGRAM channel

WEALTH ARCHITECT
    https://t.me/joinchat/AAAAAELl4KUnaJzi-JJlDg/

THE SILVER TRAP

A GOOD STORY CAN ALSO HURT WHEN TIMING IS NOT RIGHT

The entire financial and commodity markets are excited with the rise and rise of Silver.
Everywhere you look — TV, YouTube, WhatsApp groups — one line keeps echoing:
“Silver will hit $100 soon!”

This blog has been pushing/nudging for SILVER investment at regular intervals since 2022 January
starting with when Silver was Rs.58,000 per kilo. 

Silver’s long-term story sounds powerful — Electric Vehicles need it, Solar Panels consume it, Electronics can’t do without it, and global supply is tight. But before you get carried away by the noise, pause and ask yourself   —   does a great story always mean a great entry point?
One more question you should ask yourself is...
Do I really need Silver in my portfolio or I want to buy just because everyone is buying?
We have already seen so many assets, stock prices sucking gullible investors with this kind of FOMO. So, a rethink, a pause before committing is a must! 

HISTORY OF SILVER PEAKS :
Every time Silver has touched $49–$50 per ounce, it has crashed badly.
In 1980, it fell 92% after a crazy rally.
In 2011, it fell 73% after the QE boom.
And now, 2025 — we are again near that same level but WITH ONE BIG DIFFERENCE!
This time, silver does have genuine industrial tailwinds — EV batteries, solar panels, electronics, and green energy.
However, even strong long-term fundamentals don’t protect you from short-term excesses. When price runs far ahead of demand, even the best stories can turn into expensive lessons when timing is wrong.

TOO FAST, TOO SOON
Silver went from $20 to $49 in just 1 year.
Such a scorching price rise even with a valid reason.. calls for deeper research. Even if it deserves to rise, the speed at which it has risen calls for caution, not celebration.
Every market, whether it’s real estate, gold, or crypto, moves through four predictable phases: — accumulation → enthusiasm → euphoria → exhaustion.

No, this doesn’t mean Silver will crash tomorrow.
But it’s quite possible that we may see:

• A Time Correction (sideways movement for months) and

• A Price Correction (a dip before stabilizing again).

Remember — nothing grows in a straight line, especially in commodities.

FUNDAMENTALS COULD CHANGE
Change in fundamentals could change the Sentiment in Silver.
Interest Rate Impact:
The US might delay rate cuts. A stronger Dollar usually pushes Silver prices down.

Industrial Slowdown:
     EV growth is slowing, China’s manufacturing data is weak, and solar expansion is flattening. That means industrial demand may not justify current prices.

Gold–Silver Ratio Warning:
      Historically, when this ratio widens, Silver tends to underperform Gold — and that’s happening again.

In short, there’s more excitement than earnings behind this rally.

Watch : https://youtu.be/OObgOZwp_Rk

EUPHORIA EVERYWHERE
When everyone including my driver and maid are giving “Silver Tips,”
that’s often a sign the top is near.
When the crowd is excited, the wise quietly step back.

WHAT STRATEGY MAKES SENSE NOW?
If history has a voice, it says —
Every time Silver looks unstoppable, it soon stops hard.
Don’t chase headlines. Stay Calm. Stick to Asset Allocation. Dont Forget Diversification. Discipline Always beats excitement.
Remember: Past peaks of greed became future points of regret.
Focus on long-term, diversified investments (like SIPs in mutual funds), not quick riches.

Still want to buy Silver? Consider Systematic investment way to average your purchase cost. Yes, Silver may shine in the long run — but not every shine is a signal to jump in.

Regards,
Srikanth Matrubai
AMFI Registered Mutual Fund Distributor
Disclaimer: This post is for educational purposes only and not investment advice.
hashtag#DontRetireRich

All the best,
Regards,
Srikanth Matrubai

MUTUAL FUND DISTRIBUTOR

REBALANCE VOLATILITY CERTIFIED COACH

Srikanth Matrubai, Author of the Amazon Best Seller DON'T RETIRE RICH

You are strongly encouraged to consult your financial planner before making any decision regarding this investment. The views expressed here are the author's personal views and should not be interpreted as a recommendation to invest/avoid.

 

Srikanth Matrubai Author of the Amazon Best Seller DON'T RETIRE RICH

Do read the book and give your valuable feedback and request you to post positive comments on Amazon. https://amzn.to/3cHUM6M/ 

You can purchase the book on Amazon and Flipkart 

For the best of ideas on where to invest to create Mountains of Wealth 

join my TELEGRAM channel

WEALTH ARCHITECT
    https://t.me/joinchat/AAAAAELl4KUnaJzi-JJlDg/