Here is a study of the Historic prices of Gold in India.
Here we have tabulated the prices of Gold from 1964 till 2020. The historic return was about 13% . The Rate of return per annum is never less than 6%
The table below gives annual increase in Gold price (in Indian Rupees) compared to previous year over the past 50 years.
The annual return on Gold investement since 1964 is provided in the above chart. The return was negative in only 8 out of the 55 years of the chart. The average return per annum is 13.90% , the trend line in Linear , Polynomial (of degree 6) , Moving average of last 10 years is included in the chart.
It can be inferred that the price of gold has been steadily increasing @ rate of atleast 12% annum over the period . A further study was done about the trend of increasing Gold prices , comparing the Rate of Return if one has invested in a particular year and stayed put till 2020. The chart below shows the result. There is a higher variation of returns towards the latest decade, as the ROI as there is less smoothening of the historic returns as we near to the current year. Overall , from the above figures , we can conlude that the historic returns on Gold is about 13%.
In the last decade (2010-2020) the returns were 12.75% and during the previous decade (2000-2010) the returns have been 13.43%.
Compare this to interest rates average of about 8-9% during the period. We can conclude that gold beats bank interest hands down during any decade of the past 5 decades.
source : www.Capitalmind.in
