In the financial year 2022-23, investors got more returns in gold than stocks

MUMBAI: As the financial year 2022-23 is coming to an end, geopolitical tensions including Ukraine and the globalized banking crisis in the US, Europe have led investors to turn to the safe investment option gold-gold in this farewell year. Gold prices have rallied as global investors turn away from investments in comparatively riskier stocks and become buyers of gold. While stock prices have been seen falling. So, investors have got more return in gold than stocks in the year.

Two years ago, as a result of the corona epidemic, there was a big boom in global equity markets and investors got high returns in stocks. But after that, as a result of the rise in interest rates due to the geopolitical tension in the Ukraine-Russia issue and the rise in interest rates due to the rise of the banks in America, Europe, in the wake of the global banking-financial crisis, investors started selling stocks and becoming buyers of the safe investment tool gold.

In FY 2022-23, MCX Gold rose 15.42 per cent, while the stock market index Sensex fell 1.03 per cent and the Nifty 50 index fell 2.31 per cent. Domestic silver prices also rose by 2.1 per cent in FY2022-23 as compared to growth of 6.3 per cent in the previous financial year.

After the closure of Silvergate Bank, Silicon Valley Bank and Signature Bank in America, panic of the financial crisis like Lehman Brothers in 2008 spread again, there was a big sell-off in Indian stock markets. Along with this, the Credit Suisse crisis in Europe raised concerns. So investors sold their investments in stocks and became buyers of gold in the local markets along with the global markets.

The price of gold in the world market crossed the level of 2000 dollars per ounce. With this, on a long-term basis, gold has outpaced stocks in price growth. Gold has gained more than 93 percent, while Sensex has seen 76 percent and Nifty 69 percent.

Meanwhile, gold prices in dollars have increased by 1.88 percent in the current financial year. While the Dow Jones index of the American stock market has decreased by 7 percent and the S&P 500 index has decreased by 12 percent.

Silver prices in dollar terms have declined by 9.4 percent over the period. In the last seven days, the price of MCX gold rose by 7.5 percent to reach a record high. The estimate of the global price of gold has now increased to 2075 dollars per ounce and the local price is around Rs. 64000 per 10 grams.