Gold Vs Equities: Busting Myths—Does Yellow Metal Still Shine Over 'Safe Haven' Appeal?

Gold has long been considered a "safe haven" investment. The yellow metal's tangible nature and stability appeal to conservative investors, especially during market downturns or financial crises. Equities, while riskier, have historically offered far higher long-term returns.

A financial expert has found that Rs 1 lakh invested in gold in 2003 would have grown to around Rs 6.5 lakh by 2023, while the same amount invested in the Nifty 50 during the same period would have increased nearly four times more, reaching close to Rs 24 lakh.

Chartered Accountant Nitin Kaushik explained on X, "Gold gave security. Equity gave prosperity.” He said that parents have long told their children that "gold is the best investment," but he added that while safety feels comforting, true wealth comes from growth. "Lesson: Safety feels good, but wealth comes from growth. Don't just preserve, let your money work harder," he wrote.

Gold guarantees huge returns

One of them is that gold guarantees huge returns and will make you rich quickly. This is not accurate. Gold is a relatively stable asset and grows slowly over time. Gold yields moderate returns compared to stocks, which have the potential to greatly increase wealth if invested wisely.

Gold outperforms stocks 

Another misconception is that in times of uncertainty, gold always performs better than stocks. In reality, even if gold helps guard against market crashes and inflation, stocks often grow far more quickly over the long run.

Buy gold only when the price falls

Many investors believe that gold should be purchased only when its price drops. This is a common misconception. In reality, it is very rare for gold prices to fall significantly, and predicting the lowest price is nearly impossible. If you wait for a price drop, you may miss out on years of steady growth.