Dhanteras 2018: Gold never disappoints its investors | Know why

Dhanteras 2018 is upon us and the market for Gold is on its all-time high. If we look at the statistics and records then whoever has invested in Gold 10 years ago then that person would be enjoying a CAGR (Compound annual growth rate) of more than 10 per cent. None of the banks offer that kind of return on their Fixed Deposit (FD) schemes. Not only this, if a person had invested their money on Gold 13 years back, then that person would be enjoying a CAGR return of more than 12 per cent.  

If a person would have invested Rs 1 lakh in Gold 10 years ago then the value of the Gold right now would be 2.67 lakh, with 10.35 per cent of CAGR return. But, if this money would have gone to any bank in their FD scheme, then the value now would have been Rs 2.15 lakh. Meaning, a loss of around Rs 50,000.

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And, if the investment on Gold would have been done 13 years ago, then the person would be enjoying a CAGR return of 12.40 per cent. Which means, a return of Rs 4.57 lakh on an investment of Rs 1 lakh on Gold. The same amount in Bank would be now valued at Rs 2.72 lakh.

(Note: The interest of Fixed Deposit (FD) have been counted as an average of 8 per cent)

The president of ShareKhan, Mridul Verma said that investment on Gold is always taken as a safe investment, adding that Gold has never disappointed its investors. It is regarded as a long term investment and early returns should never be considered when investing on Gold.

Rate of Gold in last 13 years on Dhanteras:

1. 30 OCTOBER 2005: Rs 6990 
2. 19 OCTOBER 2006: Rs 8728 
3. 7 NOVEMBER 2007: Rs 10710 
4. 26 OCTOBER 2008: Rs 11915 
5. 15 OCTOBER 2009: Rs 15817 
6. 3 NOVEMBER 2010: Rs 19625 
7. 24 OCTOBER 2011: Rs 26735 
8. 11 NOVEMBER 2012: Rs 31588 
9. 1 NOVEMBER 2013: Rs 30626 
10. 21 OCTOBER 2014: Rs 27458 
11. 9 NOVEMBER 2015: Rs 25800 
12. 28 OCTOBER 2016: Rs 30049 
13. 17 OCTOBER 2017: Rs 29671 
14. 1 NOVEMBER 2018: Rs 32860