This Akshaya Tritiya: Gold or Gold Jewellery Stocks? What if You Had Invested Rs 1 Lakh in Them?

Both the options have their unique characteristics. Gold is a physical asset that can be touched and even worn, while stocks are intangible and stored in a Demat account. Identifying a good company is a skill required when investing in stocks, which differentiates it from gold as an investment choice.

Deciding where to put your money is a big deal in managing your finances. During Akshaya Tritiya, a lot of people in India think about investing. One option that's been around for a long time is gold. In this article, we'll look at what could happen if you invested Rs 1 Lakh in gold compared to buying stocks in a company like Kalyan Jewellers, Titan Company, Senco Gold and so on which makes and sells all sorts of jewellery, including gold. There is a variety of stocks available across different market segments, including Large-Cap, Mid-Cap, and Small-Cap. We'll check out how they've been doing over the last year and talk about what might help you decide where to invest.

Also read: HDFC bank versus HDFC bank’s FD; What if you had invested Rs 1 lakh each? read the complete analysis!

Investing in Gold on this Akshaya Tritiya

Gold has been a reliable way to keep your money safe for hundreds of years, and it's still a top pick for people who want to protect their wealth. When the economy gets shaky or prices start going up, gold often becomes more valuable. That's why many investors turn to gold when things get uncertain or when inflation is a concern. The price of gold can go up or down for a bunch of reasons, like what's happening in the world politically, how the economy is doing, and how confident investors are feeling.

Over the past year, the price of gold has been up and down, mainly because of what's been happening in the world economy. If you want to figure out how well your investment in gold would have done, you'd need to look at how much gold was selling for last Akshaya Tritiya and compare it to the current price. That'll give you an idea of whether you would have made money or not, and whether gold performed better or worse than the stock market.

Investing in Equity

Investing in a company like Kalyan Jewellers, Titan Company, Senco Gold and so on which makes and sells all sorts of jewellery, including gold, is a different form of investment. When you invest in a specific business, you become a shareholder, and your returns are dependent on the company's performance. Some of them are the well-known jewellery retailers in India, and the performance of their stock can be influenced by various factors, including company financials, management, market conditions, and consumer demand for jewellery.

Analysing the Returns: Gold versus Gold Jewellery Stocks

To determine the outcome of both investment options, we first need to check the historical prices of these investment alternatives: gold and the stock price of these companies same day past year.

The gold was priced at Rs 61,270, and as of writing this article, it is trading at around Rs 72,144, representing an impressive return of 17.75%. This means your investment of Rs 1 lakh has grown to around Rs 1.18 lakh. Now here are the equity returns during the same period.

We can analyse that Kalyan Jewellers has achieved the highest returns of around 283 per cent, meaning Rs 1 lakh would have grown to Rs 3.83 lakh in just one year. However, both options have their features. Gold is a physical asset that can be touched and even worn, while stocks are intangible and stored in a Demat account. One significant disadvantage of investing in stocks is the need to choose a good company, which depends on their financial performance, management, and many other factors.

In conclusion, both investment options have their advantages and disadvantages, and the choice ultimately depends on a person's beliefs and preferences.

Investors must keep this multibagger stock on their radar.

Disclaimer: The article is for informational purposes only and not investment advice.