Is Physical Gold a Good Investment?
For generations, gold has symbolized wealth, security, and celebration in Indian households. But is physical gold really a good investment? In this insightful Gen S Life video, Roopa Venkatkrishnan challenges the traditional notion of buying gold purely for returns.
According to her, purchasing gold jewelry or bars expecting significant price appreciation is not the right approach. Historical data over the last 44 years shows that gold has yielded an average return of 9.16%, only about 1.4% above inflation—far less than equity investments, which typically generate 12% returns over the long term.
Gold prices are also highly volatile, often rising during global crises but stagnating afterward. For those looking to invest smartly, Roopa recommends alternatives like Gold ETFs (Exchange Traded Funds) and Sovereign Gold Bonds (SGBs). ETFs eliminate the hassle of storing physical gold, while SGBs offer both gold appreciation and an additional 2–2.5% annual interest.
However, if you’re buying gold for tradition, enjoyment, or future needs such as weddings, it remains a personal and cultural choice. The key, she emphasizes, is to understand your purpose before making a purchase.
At Gen S Life, we believe informed choices build lasting value — not just glitter.
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