“Kitna deti hai?”(how much does it give) For a country obsessed with mileage Maruti advertisement hits the right chords. Likewise most of the times when we talk of investment our talk is centered around how much will be the return? Taxation, Liquidity, insurance comes later. This article shows prices of gold and silver and returns in gold and silver. What have been returns of Gold?
Prices of Gold
Gold Price from 1925
If we plot the Price of gold per gm the chart is as follows:
Gold price chart
Returns of Gold over different periods is shown in the image below.
Returns on Gold
Before 1970, the gold price was pegged to the dollar, so the Indian rupee variant was simply a function of the dollar-rupee exchange rate. Earlier, gold imports were controlled so till 2000 or so, the Mumbai price was 20-30% higher than international prices appropriately converted. WiseWealth Advisors’s 30+ years comparative chart on Gold and Sensex, adjusted for Inflation (pdf) is an interesting read.
Prices of Silver
Quoting from Reserve Bank of India Publication Average Price of Silver in Domestic and Foreign Markets
Average Silver prices from 1970-71
| 2012-13 | 57602.30 | 3050.71 | 53329.11 | 4273.19 |
| 2013-14 | 46636.80 | 2145.41 | 41643.21 | 4993.59 |
| 2014-15 | 40558.48 | 1814.04 | 35611.18 | 4947.30 |
If we plot the Mumbai Price of silver in Rupees per kg the chart is as follows:
Chart of Average Silver prices from 1970-71
In 40 years the CAGR on silver is: 10.47% (Using the returns calculator with Starting value for year 1971-72 as 561.35 and final value as 57,315.87 in 2011-12.) WiseWealth Advisors have done interesting 30+ years comparative chart on Silver and Sensex, adjusted for Inflation (pdf) .
WiseWealth Advisors Must Read:I’m saying this was for first time have compared returns of gold, silver, fixed deposits, and Sensex and suggest why investing in equities make sense.
Related Posts:
- Understanding Returns: Absolute return, CAGR, IRR etc
- Ways to invest in Gold
- Gold : Infographics
- Comparison of Fixed Deposits and Sensex Returns
Aim was to state the facts and leave it open for interpretation. So does Gold actually glitter? What are your thoughts on price of gold and/or silver?
The gold prices in india are determined in an informal way i.e They are decided based on the “Masters”. The IBJA ( Indian Bullion Jewellers Association) plays a vital role in determining day to day gold rates in india. IBJA members include the biggest loan dealer’s, Who have a collective hands on determining gold rates. IBJA generally gets into the act by considering the prices that were quoted by the ten biggest gold dealers. Depends on their quote the IBJA then decides the gold rate.
Read more at https://www.mymoneykarma.com/gold-rate-india.html
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