Zerodha's Nithin Kamath highlights how this asset had superior returns over stocks since 2000

Gold is often viewed as a safe haven by the majority of investors, providing a sense of security that their investment is protected in a dependable asset. Over the last two years and even the last 25 years, gold has shown superior performance compared to equities on a global scale.

In a recent analysis, Nithin Kamath, CEO of Zerodha, examined the 24-year performance of gold compared to the Nifty 50 index, highlighting a remarkable difference in returns for investors. Kamath's insights revealed that since 2000, gold has appreciated by an impressive 2,027 per cent, significantly outpacing the Nifty 50's 1,470 per cent return.

This comparison underscores gold's resilience and consistent appreciation, particularly during economic uncertainties such as the financial crisis of 2008 and the Covid-19 pandemic. Kamath's analysis underscores gold's role as a valuable asset for Indian investors seeking diversification. 

Kamath's breakdown included an illustrative chart that depicted gold's performance against the Nifty, emphasising its impressive stability in contrast to the latter's susceptibility to economic downturns. He noted, 'Nobody can explain what makes gold prices move, but it seems to work.' The data pointed out that while the Nifty 50 faced significant declines during periods of economic stress, gold maintained a steady upward trajectory, offering investors a reliable hedge against volatility. 

Moreover, the analysis showcased gold's performance in recent years, highlighting its 18 per cent price appreciation in 2025, while the Nifty LargeMid 250 saw a 6 per cent decline. Kamath's data also revealed that in 2024, gold outperformed with a 25 per cent return against the Nifty LargeCap 250's 19 per cent. These insights reinforce gold's status as a robust investment, particularly in times of market instability, providing consistent returns in the face of fluctuating equity markets. 

Over a longer period, since 2005, gold has delivered an average annual return of 20 per cent, with only three instances of negative returns in 2023, 2015, and 2021, where it fell by 18 per cent, 8 per cent, and 2 per cent, respectively. Kamath's commentary on these trends highlighted gold's consistent performance and its ability to generate returns that rival traditional equity investments. His observation, 'I’m cherry-picking the date, but it’s kinda crazy that since 2000 gold seems to have generated higher returns than Nifty,' further illustrates the unexpected strength of this precious metal compared to equities over a significant timeframe. 

Kamath suggested that Gold ETFs could be the most advantageous option for Indian investors to invest in gold now that SGBs are no longer available. He highlighted the timely launch of the GOLDCASE, @ZerodhaAMC's Gold ETF, coinciding with the rise in gold prices and the cessation of SGB issuance.  

“We couldn't time the launch of the GOLDCASE, @ZerodhaAMC’s Gold ETF any better. First, gold prices started shooting up, and then the stopping of sovereign gold bonds (SGBs). Now that SGB issuance has stopped, Gold ETFs are probably the best way to get exposure to gold,” he wrote.

In the broader context, Kamath's analysis aligns with a growing sentiment among investors looking toward gold as a strategic asset within their portfolios. While equities like the Nifty 50 offer growth opportunities, the volatility and downturns they can experience highlight the need for diversification. Gold, with its historical resilience and consistent returns, provides a counterbalance to equity market fluctuations. Kamath's insights serve as a reminder of the importance of considering diverse asset classes in portfolio management to mitigate risks and optimise returns.