- By Aditya Pratap Singh
- Tue, 29 Oct 2024 08:56 AM (IST)
- Source:JND
Diwali 2024: Individuals who invested in gold and silver during Dhanteras last year have made significant gains. In a year, gold has generated a return of 33% for its investors, while silver gave nearly 40% return on investment. According to the data, silver has outperformed gold and the stock market to produce the highest returns, shattering all previous records. Last year, Dhanteras was observed on November 10th and at that time the price of gold was approximately Rs. 61,000 per 10 grams.
Currently, the Gold price has climbed over Rs. 80,000. In a year only, the price of gold surged over 31.33 per cent. Likewise, on the last Dhanteras, the price of silver was about Rs. 70,000 per kilogram, by January 2024, the price soared to a level of Rs. 73,000. In the last 10 months, the price has surpassed the Rs 1 Lakh mark. In the current calendar year (YTD), the price of silver has increased by more than 35%.
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2024 has been phenomenal for gold and silver
Looking at the data of the previous four and a half decades (45 years), gold and silver recorded their highest growth in 2024. Previously, in 2007, gold had climbed by around 31%. Meanwhile, in 1979, the fastest growth of 133% was recorded. This year still has over two months to go. If gold prices rise, then gold may achieve an unbroken record in the international market.
Silver outperforms stock indices
In the current year, silver has provided the highest return compared to gold, Sensex, and Nifty. This year, the stock market has seen a lot of volatility. The biggest decline was seen in October. Sensex and Nifty have fallen by nearly six per cent. Despite this decline, Sensex has provided a return of 9.91% and Nifty has provided a return of 11.27% in the current year.
This year has been the best for silver investors in the last 10 years. Silver has climbed by about 40% since last year’s Dhanteras. Silver had seen an increase of 21.56% in the previous year. In Dhanteras of 2020, silver provided a return of 35.49%. Since 2012, silver has provided gains six times and losses six times.
Expert Opinion
Vinnaayak Mehta, Founder of The Infinity Group said, "Gold and silver are traditionally seen as auspicious purchases during Dhanteras and other festivals. Despite yielding returns of over 30% or 27%, these metals are not typically viewed as investment assets in India. The cultural belief is that items bought on auspicious occasions are meant to be kept rather than sold. As a result, gold and silver, no matter how well they perform financially, are seen more for their sentimental value than as assets to be liquidated."
"In contrast, investment options like gold ETFs, mutual funds, or indices like Nifty are approached with a returns-focused mindset. When building portfolios, investors rarely include physical gold as an asset class, regardless of how much they own, underscoring the unique, non-financial value gold holds for many in India," he added.
