Gold Versus Stock Market; Has Gold Generated More Profits?
Summary
Over the past one year and nine months, gold investment in Nepal has outperformed the stock market with a 117% return compared to the NEPSE index's 26% gain. Over a decade, gold’s returns also significantly exceeded stock market growth.
Key Points
- Gold delivered a 117% return over one year and nine months, outperforming the NEPSE index's 26% gain.
- Over the past decade, gold earned around 472% return with a CAGR of 20%, while NEPSE grew about 112% with an 8% annualized return.
- Gold's inflation-adjusted returns significantly exceeded Nepal's average inflation both in short and long term periods.
- Practical challenges in gold investment in Nepal include limited access to gold bars and difficulties in selling jewellery, contrasting with stock market liquidity.
- Gold prices and stock market in Nepal often move inversely, influenced by investor behavior shifting funds between the two.
