Gold vs Stock Market: The Race to ₹1 Lakh – Which Will Reach the Milestone First? - Read Here

Gold vs stock market: As both gold and the stock market continue their impressive rise in 2024, the race to hit the ₹1 lakh mark is intensifying. On Monday, the Sensex surged close to 85,000 points, setting a new record, while gold prices reached ₹75,000 per 10 grams. Now, the big question is: which will cross the ₹1 lakh milestone first? Both markets have performed similarly this year, making it a neck-and-neck competition. Let’s delve into the current trends and what the future holds for these two popular investment options.

Gold vs stock market: Sensex and Nifty Surge Ahead

Gold vs stock market: The stock market has shown remarkable performance this year, with the Bombay Stock Exchange (BSE) Sensex climbing to over 85,000 points. This represents a 17.72% return for investors, as the index surged by over 12,804 points from the previous year’s close of 72,240. Investors have been riding this wave of gains, and the market remains optimistic despite its unpredictable nature.

Similarly, the National Stock Exchange (NSE) Nifty index has also had a stellar year, delivering returns of 19.55%. Nifty rose from 21,731 points last year to a new high of 25,981 points this year. While the Sensex is leading in terms of absolute numbers, Nifty’s higher percentage return adds fuel to the ongoing debate about which will hit ₹1 lakh first.

Gold vs stock market: Gold Shines Bright with Potential

Gold has had an equally impressive run in 2024, giving investors strong returns. On the Multi Commodity Exchange (MCX), gold prices have risen by ₹11,434 per 10 grams, climbing from ₹63,203 to ₹74,637. This represents an 18% return for investors, putting gold in close competition with the stock market. Analysts believe gold still has more room to grow, particularly with global geopolitical tensions and supportive monetary policies providing a boost to its price.

Silver has also performed exceptionally well, outpacing gold with a return of 21.34%. Its price has surged by ₹15,888 per kilogram, crossing ₹90,000 this year. Silver’s outperformance suggests it could be a solid option for investors looking for higher returns in the commodity space.

Gold vs stock market: What’s Driving the Race?

The competition between the stock market and gold to reach ₹1 lakh is fueled by a range of factors. The stock market has benefited from strong domestic and global investor sentiment, as well as the Indian economy's resilience. However, the stock market remains volatile, with external factors like global political instability and central bank policies influencing market direction.

On the other hand, gold is seen as a safe-haven asset, particularly during times of uncertainty. With ongoing geopolitical tensions and fluctuating market conditions, gold's steady rise is expected to continue. If the global economy experiences any shocks or downturns, gold could gain even more ground, potentially hitting ₹1 lakh before the stock market does.

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