>Expert after expert has been shouting from the rooftops about how gold might go from strength to strength from the current levels. And it could well be justified. However, if you look at the chart of the day laid out below, you would consider buying something else. Shares in Indian companies that is. Over a really long-term period, returns from Sensex have beaten returns from gold hands down. In fact, gold doesn’t even come close.
Since Jan 1990 till Sep 2009, while gold is up nearly 5-fold and just about keeping pace with inflation, Sensex is up more than 25-fold, albeit with higher volatility. Agreed that best days for gold lie ahead as the metal had barely budged in the 1990s but so do India’s. While gold has historically proven to be the best bet against inflation, the chart makes it clear that making it a large part of your portfolio may not be a very good idea. To give your portfolio that extra edge, stocks are a must have.
matrixandillusions 