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Equities vs Precious Metals
highlights
- It would be better to invest money in the stock market or invest in precious metals like gold and silver.
- A recent report from Edelweiss Mutual Fund shows that precious metals have given good returns recently
- In the coming few years, better opportunities and potential profits can be seen in the stock market.
Equities vs Precious Metals: In recent times, due to changes in the global markets, this question is again arising among investors whether it would be better to invest money in the stock market or in precious metals like gold and silver. A recent report by Edelweiss Mutual Fund suggests that precious metals have recently given good returns and their prices are rising, but the stock market may see better opportunities and potential profits in the coming few years. In simple language, gold and silver are performing well right now, but stocks are expected to get more benefits in the mid-term.
Strength in metal continues: Edelweiss Mutual Fund
The report of Edelweiss Mutual Fund says that the prices of gold and silver have increased significantly in the last one year. This means that investors are more attracted towards them, especially when uncertainties have increased in the world. It has been said in the report that the prices of gold increased and its performance was good at different times.
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Silver prices increased even more, which shows that people are looking for safe investments. But the report also notes that there was a slight decline at the beginning of the year (beginning of CY26), although overall returns are still positive. This means that after the previous surge, the pace of price rise may slow down a bit.
Stock market has given good profits
Edelweiss Mutual Fund report says that gold and silver have given good profits in the long run and have also been stable, while the stock markets are looking weak for some time. Indian stock market benchmarks have fallen significantly in the past few months, which is in contrast to the metal’s sharp rise. Nevertheless, the stock market has been giving good returns overall in the last five years.
| time frame | spot gold | spot silver | BSE Sensex | NSE NIFY 50 |
| 1 week | -2.4% | -8.1% | -3.6% | -3.7% |
| 1 month | 0.4% | 4.4% | -9.8% | -10.3% |
| 3 months | 16.5% | 25.4% | -10.5% | -11.8% |
| 6 months | 35.9% | 87.94% | -8.3% | -9.3% |
| 1 year | 68.01% | 136.84% | 3.4% | 1.2% |
| 5 years | 189.67% | 208.18% | 55.3% | 48.30% |
What does Nifty-to-Gold+Silver ratio say?
A special indicator has been mentioned in the Edelweiss report, which is called Nifty-to-Gold+Silver Ratio. It shows how gold and silver are performing in comparison to equities. Historically, when this ratio gets near its long-term low (support), it often signals that stocks may start to outperform. According to the report, recently this ratio has turned near its long-term support. This indicates that in the coming time, the performance of the stock may start improving compared to gold and silver.
Stock market is getting support
The stock market is benefiting from better earnings of companies and strong economic conditions. The report says that the outlook for Indian stocks is good in the medium and long term. Profits of mid-cap companies are increasing and investors are getting opportunities due to low share prices in many sectors. Consumer-related sectors may benefit from rising income and improvement in demand. Financial companies are strong because they have got good credit and good assets. With increase in government and private investment, capital expenditure sectors can also progress.
What is the risk in the near future?
Edelweiss report says that the market condition is fine now, but there are some risks also. Such as rising and falling oil prices, Middle East tension, and rupee-dollar changes can make the market unstable. In the last 10 years, different investments have performed well at different times. Sometimes gold and silver do well, sometimes shares and bonds. Therefore, the report advises to create a balanced portfolio, which has both safe investments and growth investments. This increases the chances of getting good results in the long term.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice in any way. ET NOW Swadesh recommends its readers and viewers to consult their financial advisors before taking any money-related decisions.
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