Blitz Bureau
MUMBAI: Gold emerged as the best-performing asset in FY25, rising by 41 per cent in dollar terms, driven by its appeal as a safe-haven during global uncertainty, the National Stock Exchange (NSE) said, reported IANS.
In the long horizons, however, Indian equities have delivered better returns, reinforcing their role as a wealth-building asset, it added.
Global gold demand surged to a 15-year high, led by strong investment inflows and sustained central bank buying – exceeding 1,000 tonnes for the third straight year – as part of a broader reserve diversification trend. “India reflected this shift, with the RBI ranking as the third-largest official buyer over the past three and five years, and gold now making up over 11 per cent of its forex reserves,” said the stock exchange in its report.
While jewellery demand softened due to high prices, investment demand gained momentum, particularly in Asia, with China and India leading bar and coin purchases.
Gold-backed ETFs also saw a sharp revival globally, reversing multiquarter outflows, with India recording robust inflows. India’s financialised gold ecosystem continued to deepen through its Sovereign Gold Bonds (SGBs)– globally unique instruments offering fixed returns, tax efficiency, and sovereign security.
Since inception in November 2015, SGBs have mobilised nearly 147 tonnes or Rs 72,274 crore. With geopolitical risk and macroeconomic uncertainty persisting, the underlying demand drivers for gold remain intact.
Central banks are expected to remain key structural buyers, as global reserve strategies adapt to an increasingly fragmented economic landscape, the report mentioned. However, over longer investment horizons, Indian equities have outperformed. Over the past 20 years, the Nifty 50 has delivered a 13 per cent annualised price return and a 14.4 per cent total return.
