Gold in comparison to other commodities

Gold's distinctive traits are what set it apart from other commodities, making it a safe-haven asset like no other. Historically, gold has delivered positive performance over the long term, because its minimal or negative correlation to performance of other assets.

Gold performs consistently over the long term

1. 1. Risk-adjusted returns:
Gold's use as an investment and jewellery/adornment has helped deliver annual average returns of about 9% over the last 10 years (2009-2019). This performance is comparable to that of stocks but ranks higher than that of Indian bonds and commodities. Since 1981, gold's average annual return of 10% has surpassed India's consumer price index (CPI).

2. 1. Hedge against inflation:
During times of inflation, gold holds its own by acting as a hedge against market risks. In contrast, many other assets fail to protect portfolios when the market turns volatile. - During the global economic meltdown of 2008-2009, Indian stocks, real estate, and most portfolio diversifier commodities plummeted. SENSEX tumbled 56% between December 2007 and February 2009. Over the same period, the price of gold went up by 48%.