Consistent Returns for Indian Gold Investors
Over the last 25 years, gold has provided steady returns for Indian investors. From 2000 to year-to-date in 2025 (see image below), gold has achieved a 13% compound annual growth rate (CAGR) in Indian rupees (INR). This demonstrates that gold has remained a reliable asset for those who hold it in India, even amidst changing markets and fluctuating currency values.
Source : IGWT on X
Not Just About Rupee Depreciation
Many people believe that gold’s returns in India are solely a result of the weakening rupee against the US dollar. However, this is not entirely accurate. Even in US dollar terms, gold has delivered a 10% CAGR. Of the 13% growth in INR, only 3% can be attributed to rupee depreciation. Similar trends can be observed globally where gold has yielded 10.7% growth in British Pounds, 10% in Australian Dollars, 11.5% in Japanese Yen, and 9.4% in Chinese Yuan. This indicates that gold’s value is a global phenomenon, not just a local trend.
Gold’s Strength is Often Overlooked
For years, some financial experts have claimed that gold is a worthless asset, often to promote their own financial products. However, the long-term data contradicts this notion. Gold has consistently provided stable returns while many other assets have experienced fluctuations. It is not merely a random investment choice but a proven component of effective wealth-building strategies.
Why Gold Continues to Rise
The steady increase in gold’s value is primarily driven by the devaluation of fiat currencies. As more money is printed and currency values decline, gold emerges as a safer store of value. This trend of currency debasement is expected to continue, reinforcing gold as an essential element of any balanced investment portfolio.
A Simple Reminder for Investors
Considering all this data, there is no reason to believe that gold will lose its status as a valuable asset. Incorporating gold into your portfolio serves as insurance against financial risks, offering both safety and consistent returns in the long run.
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