Investing in Gold vs Stocks: If You Had Invested Rs 5 Lakh 5 Years Ago, Here's How Much You Would Have Today?

As investors continue to navigate uncertain global economic conditions, the age-old debate between physical gold and equity investments such as the Nifty 50 has gained renewed relevance. While both assets are popular for wealth creation, their performance over different time frames paints a compelling picture of contrasting returns.

Gold Vs Stocks: Which is better Investment Option?

Gold as a Safe Haven

Traditionally seen as a hedge during times of inflation or financial instability, gold has remained a go-to investment for many conservative investors. Over the past year, gold prices have risen steadily amid global uncertainties. However, when viewed over a longer horizon, the performance is more modest in comparison to equities.

Five years ago, on July 7, 2020, the price of 22 karat gold in Mumbai stood at Rs 4,626 per gram. Fast forward to July 7, 2025, and the price has climbed to Rs 8,861 per gram - a 91.54% increase. An investment of Rs 5 lakh in physical gold five years ago would now be worth approximately Rs 9,57,700.

Stocks: Stable Growth with Stronger Returns

On the other hand, the Nifty 50 index which tracks India's top 50 companies by market capitalisation has delivered a more substantial return over the same period. As of July 7, 2025, the index closed at 25,461.30, marking a 135.76% rise over five years.

This means that a Rs 5 lakh investment in the Nifty 50 index back in 2020 would now be worth around Rs 11,78,800 - outperforming gold by a significant margin.

One-Year Snapshot Gold Vs Stock Investment: Which Takes the Lead?

Interestingly, over the past year, gold has outperformed the Nifty 50 in terms of returns, largely due to heightened global tensions and inflationary pressures. This short-term surge reinforces gold's role as a reliable store of value during uncertain times.

Both physical gold and Nifty 50 offer attractive opportunities for investors, but their suitability depends on the time frame and risk appetite. While gold provides stability and acts as a financial cushion during market downturns, equity investments like the Nifty 50 have shown greater potential for long-term wealth creation.

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