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

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