Not just a safe haven asset, but a Nifty beating one: Nithin Kamath reveals shocking data on gold

Investors often take safe haven in gold as equities go through their ups and downs. But if we look at the returns since 2000, gold returns have outpaced the equity index Nifty. This could be actually surprising to many, but the data shared by Nithin Kamath substantiates this.

"I am cherry-picking the data, but it's kinda crazy that since 2000 gold seems to have generated higher returns than Nifty," said Kamath, while sharing three sets of data which showed gold performing better than Nifty.

The data put out by Kamath shows that Gold CFDs have surged by a massive 2000%, compared with 1470% return of the Nifty50 index.


Kamath, who is also the co-founder of Zerodha, said they couldn't time the launch of the Goldcase or Gold ETF any better.

"First, gold prices started shooting up and then the stopping of sovereign gold bonds (SGBs). Now that SGB issuance has stopped, Gold ETFs are probably the best way to get exposure to gold," he said.


The government has decided to stop the issue of SGBs due to the high costs associated with borrowing. Finance Minister Nirmala Sitharaman had announced it on the eve of Budget.

Gold has long been considered a safe-haven asset, providing stability during periods of market volatility. Unlike equities, which are tied to corporate earnings, economic cycles, and investor sentiment, gold derives its value from scarcity and intrinsic demand.

When stock markets face downturns due to inflation, geopolitical tensions, or economic slowdowns, investors often shift their money into gold, as it tends to hold its value or even appreciate in uncertain times.

This inverse correlation between gold and equities makes it a strong hedge against risk. Additionally, gold serves as a store of value, especially during times of high inflation or currency depreciation.

"Gold has been kind to Indian investors and has provided some diversification benefit. Nobody can explain what makes gold prices move, but it seems to work," Kamath said.

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