Gold is called the companion of crisis. Whenever there is a situation like recession in the world economy, then the trust of investors increases on gold. In the last few years, due to Kovid-19 and Russia-Ukraine war, there has been a lot of ups and downs in the global economy. Increasing uncertainties in the market have increased the prices of gold. Gold has given strong returns in the last five years. This year also the prices of gold have shone a lot.

How much gold prices increased

From July 2018 till now i.e. in the last five years, gold prices have increased by about 99 per cent. On the other hand, the Sensex has gained only 77 per cent during this period. On July 30, 2018, the price of 24 carat gold was Rs 30,850 per 10 grams. Now the price of gold has increased to Rs 61,400 per 10 grams on 21 July 2021. During this, the price of gold has increased by 99 percent.

Proves beneficial in the long term

According to experts, gold is a dead asset, which does not give you regular income but proves beneficial in the long term. On the other hand, in about 5000 companies registered on BSE, you can earn profit by investing money in individual companies, although the risk is more in this. In the financial year FY23, a double digit increase in gold prices was recorded. Gold has proved to be one of the best options giving strong returns amid tremendous volatility in the stock market.

15% return

According to experts, in the last financial year 2023, there has been a huge jump of Rs 8000 in the prices of gold in the domestic markets from 52000 to 60000. That is, gold has given a total return of 15 percent, ie 15 percent of the total. On the other hand, Nifty has given negative returns in FY23. Because the geo-political tension created due to the Russia-Ukraine war increased the inflation rate at the global level.

To control inflation, central banks have started increasing interest rates. After this, the clouds of fear of global recession started looming. In view of the crisis situation, central banks around the world started buying gold and its prices skyrocketed.

prices rising again

After the fall in the month of June, once again gold prices are seeing a rise. According to IBJA Rates, gold has again reached close to the figure of Rs 60,000 per 10 grams. On Friday, the last trading day of this week, the price of gold closed at Rs 59,610 per 10 grams.