Think gold prices always go up? This CA shares 'ZERO returns data that will blow your mind'
As
gold
prices hover around Rs 1 lakh per 10 grams, Chartered Accountant Nitesh Buddhadev has urged investors to look beyond the short-term rally and focus on gold's long-term performance. In a LinkedIn post backed by historical data, he pointed out that gold has delivered near-zero returns during long stretches in the past, despite the current excitement around its price surge.
#Pahalgam Terrorist Attack
Nuclear Power! How India and Pakistan's arsenals stack up
Does America have a plan to capture Pakistan's nuclear weapons?
Airspace blockade: India plots a flight path to skip Pakistan
Gold has seen dull decades before
Between 2012 and 2019, gold prices moved only slightly — from ₹31,050 to ₹35,220 per 10 grams. Buddhadev noted that such marginal movement translates to poor annualised returns.
'Gold gave almost zero returns for 8 years,' he wrote.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Historic Figures Who Were Actually Photographed
Gloriousa
Undo
He also pointed to an earlier example: between 1992 and 2002, gold moved from ₹4,334 to ₹4,990 per 10 grams.
'Look at another decade of dull performance: 1992 to 2002 — Gold moved from ₹4,334 to ₹4,990 in 10 YEARS — that's less than 1.5% CAGR again!' he said.
Live Events
You Might Also Like:
880 tonnes and counting: Why RBI keeps buying gold despite India having the world's 7th-largest reserves
Why gold prices doubled since 2020
Buddhadev explained that the recent rally is a result of a long period of stagnation followed by major global events.
'Because it had barely moved for 8 years before that,' he said.
He cited factors like COVID-19, war, inflation concerns, and central bank buying as reasons for the sudden price rise.
'Every sharp rally often comes after a lull,' he added.
Realistic expectations, not hype
Buddhadev made it clear that he is not advising against gold investment.
'Am I saying don't invest in Gold? Absolutely not,' he clarified.
'It's a great asset for diversification. It's a hedge in uncertain times. But it's not a consistent growth engine like equity. And it's definitely not risk-free.'
He advised investors to manage expectations and avoid overexposure.
'Don't get influenced by recency bias. Even Gold is volatile. Have realistic return expectations. It too goes through dull decades. Limit your allocation to say 5% to 12%, with a long-term view.'
Gold demand falls despite price rise
While gold prices rose 25% in the first quarter of 2025, India's gold demand by volume dropped 15%, according to the World Gold Council. The total value of gold purchases, however, increased 22% to ₹94,030 crore.
How jewellers determine the price of gold jewellery
Colin Shah, Managing Director of Kama Jewellery, says that gold prices often change due to global market movements. The final price of a gold jewellery item depends on a few key components.
Main factors in pricing gold jewellery
Gold rate in the market:
Jewellers begin with the daily price of 24-karat gold. Since jewellery is usually made in 22KT, 18KT, or 14KT, the price is adjusted based on purity. For example, 22KT gold has 91.6% pure gold, so its price is 91.6% of the 24KT gold rate. This adjusted rate is then multiplied by the weight of the gold in the jewellery piece.
Making charges:
These charges cover the cost of crafting the jewellery and depend on the design's complexity. Jewellers may charge this either as a percentage of the
gold price
or as a fixed amount per gram.
Taxes and other charges:
A 3% GST is added to the combined cost of gold and making charges. There may also be additional costs like hallmarking fees.
Example of a gold jewellery price calculation
Let's say the price of 24KT gold is ₹96,500 for 10 grams. The price of 22KT gold, which is 91.6% pure, would be ₹88,394 per 10 grams.
If a gold chain weighs 8.9 grams, the gold cost will be ₹78,670.66 (₹8,839.40 per gram × 8.9 grams).
If the making charge is ₹499 per gram, the total making charge would be ₹4,441.10 (8.9 grams × ₹499).
The subtotal becomes ₹78,670.66 + ₹4,441.10 = ₹83,111.76.
GST at 3% on this subtotal adds ₹2,493.35.
Adding a hallmarking charge of ₹45, the final price of the gold chain is ₹85,650.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
23 minutes ago
- Time of India
Man loses 19.90 lakh in online scam
T'puram: A 57-year-old Poojappura resident fell victim to an online scam, losing Rs 19.90 lakh to fraudsters posing as stock market experts. After searching online for profitable shares, he was contacted by individuals claiming to represent 'Institution Buyers', an alleged govt-approved agency. They lured him with promises of guaranteed returns and added him to a WhatsApp group which shared fake success stories. Over 20 days, the victim transferred funds in 10 transactions, only to realize he had been duped. The victim reported the incident to city cyber police, who launched a probe into the fraudulent scheme. TNN
Time of India
24 minutes ago
- Time of India
Fintech Aspora raises $53 million to expand cross-border banking for global Indians
Bengaluru: Aspora, a London-headquartered fintech startup focused on providing banking services for immigrant communities, has raised $53 million co-led by Sequoia and Greylock, with participation from Quantum Light Ventures. The company, which was previously known as Vance, is targeting the global Indian diaspora as its first major customer base. The latest round follows Aspora's $35 million and a $5 million seed extension last year. Over the past six months, the company has raised a total of $93 million across multiple funding rounds. Founded by Parth Garg in 2022, who dropped out of Stanford University to start the venture, Aspora is building cross-border financial products for non-resident Indians (NRIs) and other diaspora segments. According to the company, it currently serves 250,000 users, with its primary user base in the UAE. Over the past six months, Aspora's transaction volume has grown from $400 million to more than $2 billion, with users saving over $15 million in fees compared to traditional providers. Aspora offers zero-fee remittance transfers from the UAE and provides exchange rates identical to market benchmarks displayed on Google, while fees may apply in other markets. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Eat 1 Teaspoon Every Night, See What Happens A Week Later [Video] getfittoday Undo The company currently operates across the UK, EU, and UAE, and plans to launch in the United States in July 2025, followed by expansion into Canada, Australia, and Singapore by the end of the year. In addition to institutional investors, Aspora is backed by a group of individual investors that includes Balaji Srinivasan (former CTO, Coinbase), Sundeep Jain (former CPO, Uber), Prasanna Sankar (co-founder, Rippling), and Chad West (former global marketing head, Revolut).
Time of India
24 minutes ago
- Time of India
State govt to launch Space Park project on Thursday
T'puram: The foundation stone for Kerala's ambitious Common Facility Centre (CFC) and Research & Development Centre (RDC) as part of the Space Park project will be laid on Thursday. The event will be held at the Hyatt Regency, Thycaud, in the capital. Chief minister Pinarayi Vijayan will inaugurate the event. Organized by Kerala Spacepark (KSPACE), the event marks a significant step in boosting the state's aerospace and defence sectors. Spanning 15.06 acres in Pallippuram, the project is backed by Nabard and aims to provide shared facilities for testing, inspection and innovation. The two-day event will also feature exhibitions, startup pitching sessions and industry-academia interactions. Various sponsorship and exhibition opportunities are open to institutions and startups. Registration for delegates and students is now open. The tender for the Space Park was awarded to Ircon International Ltd, a Govt of India undertaking institution under the ministry of railways. The project was granted a Rs 241 crore loan from Nabard for the construction of the buildings and the campus. The tender was called by the Kerala State IT Infrastructure Ltd to construct two key buildings—the CFC and RDC. The estimated completion of the project is 30 months. The new facilities will be built on 3.5 acres of the 18.5 acres allotted by state govt at Technopark Phase IV in Pallipuram. Currently, the Space Park office operates from a rented building in Pattom. The R&D facility will feature startup incubators and other research amenities.
