Gold has always been one of the most popular traditional investment options for Indians. Apart from this, women have played the biggest role in increasing the purchase of gold jewellery. These ornaments, used for decoration, also increase in value over time. In this case, people buy jewellery not just for use but also for investment.
But in recent years, investors’ preference for the stock market has also increased rapidly. People invest their money in the stock market directly or through stock mutual funds. In this situation, new investors are caught in a dilemma between gold and the stock market. The question in their mind is where to invest their money in the stock market or gold so that they can get more returns. The direct answer to this question can be easily found by observing the returns of gold and the stock market this year.
Gold returns outperform stocks
In fact, gold has already given higher returns than the stock market by 2024. The price of gold in the international market has risen from $2,600 to $2,600 per ounce, which means that the price of gold has risen by about 26% this year. If we talk about the stock market, Nifty-50 has risen by only 16.60% so far this year.
In this case, it can be clearly seen that so far this year, gold has given a higher return than the stock market. If the experts are to be believed, the international market gold price will reach $2,640 to $2,660 per ounce this year. Now let’s understand what is the reason for the rise in gold prices?
These are the reasons why gold is rising
Gold prices are rising due to rising geopolitical tensions and rising inflation. At the same time, gold prices are rising due to a weaker dollar amid expectations of a rate cut by the Federal Reserve. Central banks around the world are also accelerating their purchases of gold. As inflation has led to a rise in gold prices in the international market, people in the United States, the world’s largest economy, are also worried.
According to a report, one-third of the US population finds it difficult to meet household expenses. In July, 37.4% of people aged 18 and above said they faced difficulties in managing household expenses.
Not only the United States, but many countries in the world are troubled by inflation. Argentina is in the worst trouble, with an inflation rate of 237%. Syria, which has long suffered from civil war, ranks second with an inflation rate of 120%. After that, Turkey’s inflation rate is 51.9%, Venezuela is 35.5%, Lebanon is 35.4%, Bangladesh is 11.66%, and Pakistan is 9.6%. India’s inflation rate is 3.65%, ranking 19th in the world. The lowest inflation rate is currently in China, at 0.6%.
Follow us On Social Media Google News and Twitter/X