“Compound Interest” or “The compound effect” is something that we have all learnt in math class in school. It is widely regarded as one of the most underrated concepts of learning by people all over the world, especially investors. A story like “If you had bought this in the year 1950, it would be worth millions today” is one that most of us have heard and we fill ourselves with regret upon hearing it. One such instrument that provides justice to that story is the story of return on gold.
Investing in gold has been a reliable form of investment in India since ancient times. Itremains popular even today. Gold is an attractive asset due to its stability and potential for high returns.
The returns on gold depend on the prevailing market conditions. Hence, understanding the average return on gold per year over 10 years can help investors make informed decisions when investing in this precious metal.
In this article, we’ll explore what the average return on gold per year has been in India, as well as the gold return over 10 years. Additionally, we’ll look at how to calculate estimated gold return per year and discuss some tips for making wise investments with your money.
Finally, we will consider the benefits and risks associated with investing in gold before concluding with thoughts about why it continues to be popular despite its volatility.
Also check out our article on the benefits of investing in digital gold here.
Average Return on Gold per Year in India
- The average return on gold per year in India fluctuates significantly depending on the market conditions.
- As a precious metal, its value is determined by supply and demand, which makes it an extremely volatile asset.
- For example, in 2020, gold prices increased to Rs. 50,000 per 10 gram due to the economic uncertainty caused by the COVID-19 pandemic.
- However, in the long term, gold has outperformed most other asset classes. Over a 10-year period ending January 2021, gold has returned an average of 7.74% per year in India.
Gold Returns in Last 10 Years: What Can We Expect from the Market Conditions?
- The gains in gold over 10 years is an important indicator when considering investing in the asset class. Over the past decade, gold has returned an average of 7.74% per year in India.
- This rate of return far exceeds most other assets and suggests that gold is a viable investment option.
- When predicting gold returns over a 10-year period, it is important to consider the factors that can affect the price of gold. These include changes in economic conditions, geopolitical events, government policies and supply and demand levels.
How to Calculate Estimated Gold Return per Year?
- Calculating estimated gold return per year is an important step in understanding the average returns that you can expect from gold investments.
- There are several methods for doing this, and the most popular is called the gold price delta method. This method uses the difference between two dates’ gold prices to calculate the estimated yield.
- For example, if on January 1st 2021, gold is trading at Rs 50,000 per 10 gram. A year later, on January 1st 2022, gold is trading at Rs 55,000 per 10 gram. Then you can calculate an estimated return of 10% for that year.
- This method provides investors with a reliable gauge for assessing the potential returns gold investments may offer.
Conclusion
In conclusion, gold is still a popular investment option today due to its potential for high returns and stability. The average yield on gold per year in India has been around 7.74% over the past decade. This makes it an attractive asset class despite its volatility.
Investors should use methods such as the gold price delta method to calculate estimated gold return per year before investing their money.
There are associated risks with any form of investment. Understanding these can help you make informed decisions when considering investing in gold for future rewards!