Silver, gold outshine stocks with better returns of up to 41%

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Press Trust of India New Delhi
Last Updated : Aug 15 2016 | 1:42 PM IST
Shining brighter than stocks, gold and silver have given up to 41 per cent return to investors since the beginning of this year.
Gold and silver prices have surged by 22.29 per cent and 40.69 per cent respectively, so far in 2016.
On the other hand, the 30-share barometer Sensex has gained just 7.79 per cent. The bluechip index had scaled to one-year high of 28,289.96 points on August 9, 2016.
However, from its all-time high of 30,024.74 which was attained on March 4, 2015, the index is still down 1,872.34 points or 6.23 per cent.
Market sentiment was hit in the initial part of the year mostly due to volatility in crude oil prices and concerns over health of the Chinese economy.
However, markets bounced back from March onwards amid support from good corporate earnings and pick-up in monsoon.
According to market experts, gold outperforms other asset classes during weak markets as investors are driven by the safe haven syndrome.
Gold prices have risen to Rs 31,050 per 10 grams on August 12, from Rs 25,390 on December 31, 2015, while silver rose to Rs 46,850 per kg from Rs 33,300 per kg.
Historical data shows that gold has given positive returns in 12 out of the last 15 years.
In a double-whammy for investors however the two major asset classes - stocks and gold - had failed to generate positive returns last year.
In 2014, the stock markets had outperformed gold and silver for the third year in a row with much better returns for investors.

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First Published: Aug 15 2016 | 1:42 PM IST

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