Gold Dominance Over Equities In Past Two Years, Nikhil Kamath Tweets
The recent tweet from Nikhil Kamath, co-founder of Zerodha showed that gold took over equity shares globally in the past two years, Indian being an exception.
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(Photographer: Vijay Sartape/NDTV Profit)
Many investors have considered gold as a safer investment option compared to equity shares. Though the returns received through equity are higher as compared to gold, investor prefer to take lesser risk.
The recent tweet from Nikhil Kamath, co-founder of Zerodha showed that gold took over equity shares globally in the past two years, Indian being an exception.
"The crazy thing about gold is these returns are on back of significantly lower volatility..." Kamath tweeted.
Brazil leads among the nations as the two-year CAGR gold yields are around 14.6% while equity returns are 4.6%. Also, gold's excess returns over equities amount to 6.4%.
This is followed by South Africa, where the equity returns are 13.2% while the gold yield is 14.4%, along with gold's excess returns over equities amounting to 1.2%.
In Japan, equity returns are approximately 4%, while gold yields 11.3%. Additionally, gold's excess returns over equities amount to 6.7%.
But the Indian scenario looks a bit different; the returns from equity were higher as compared to the gold return. Equity yielded 13.4% while gold gave 12.5% returns.
