Gold, Silver, or Nifty? 35 Years of Data Reveal the Real Winner This Diwali
A Personal Reflection
I could recollect my first Diwali, when I was a young market analyst in 2012. Gold adverts were all over, and nearly every person I met posed the same question, the question being - should I buy gold or invest in stocks this Diwali?
More than a decade later, the question is raised again during the festive period. However, now there are concrete facts that lead to the definite conclusion: the more impressive performance over the last 35 years has been displayed by Indian equities.
Omniscience Capital long-term study, published in The Economic Times (October 20, 2025), underscores what most investors already had their gut feeling, which is that gold can be glittering, but stocks can create wealth over a long period.
The Long View: The Equities Lead the Way.
The data provided by RBI shows that the Sensex would make an average annual profit of about 11.5 in the period between 1990 and 2025 whereas gold would only yield a profit of about 9.5 in the same period.
The difference between the 2% might seem insignificant but with time, compounding will cause it to become a giant gap.
If you had invested [?]1 lakh in 1990:
In stocks, it would have increased to [?]36 lakhs.
In gold it would have been distributed only at about [?]18 lakhs.
It is the silent strength of compounding in action and evidence of the fact that it is more productive to remain invested in the long run rather than attempt to predict the market.
Nifty vs Gold: The statistics speak volumes.
The research says about more than 6 400 (one year) and 3 100 (ten years) rolling time returns between 1990 and 2025. The results were clear:
Average Nifty return: ~11.5%
Average gold return: 8-10%
Likelihood to avoid loss of money (3-year holding):
Nifty: 98.1%
Gold: 84%
Equity investors simply had to remain invested in order to achieve the same level of safety as that of gold in seven years.
Thus, though, in this case, gold is the safer bet, statistics indicate that good equities are safer and more profitable in the long run.
The case of why Stocks are better than Gold in the long run.
Creation vs. Storage
Gold is good; equities are the creators of it. Investing in the Nifty is to own companies, the leading businesses in India, those that are innovative, growing and expanding with the economy.
Compounding Power
Profits are reinvested through equities and the returns increase annually. Gold does not earn anybody any money; it is just in your locker.
Inflation Shield
Gold and equities both fight inflation, but equities tend to win the battle since in times of inflation, the price increases are likely to increase the company revenues and profits.
Simply put, gold is a safety net to your money, equities add to it.
Where Silver Stands
Silver behaves differently. It is applied in such industries as electronics, solar energy, and electric cars. It makes it more unstable and reliant on the world demand.
Silver may be able to bring about spurts of high returns, but it is seldom able to outperform equities in the long run. It is effective in a minor diversification vehicle rather than a core investment.
Intelligent Investment Betting This Diwali.
This is the festive season; rather than buying gold jewelry, you should rebalance your portfolio.
Focus on equities for growth
Retain about 60-70 percent of your investments into equities (mutual funds, ETFs or direct stocks) in accordance with your objectives and risk tolerance.
Hold some gold for balance
Keep 10-15% in gold. It offers security and assists in time of need but cannot be relied on to grow.
Be long term invested.
Regular investment should be done through SIPs (Systematic Investment Plans). The longer you are invested the more you benefit in compounding.
Treat dips as opportunities
Corrections in the market are short-lived. In the past, investors who remained invested in times of downfalls would reap the most gains in the future.
Aim for balance, not extremes
An intelligent portfolio is a combination of stability (gold) and growth (stocks).
What Lies Ahead
The growth story of India continues to be good, with a youthful population, an increased consumption and a growing usage of technology, all of which are good signs to long term equity investors.
Gold will never be disrespected culturally and emotionally, but it is probable that stocks are going to provide a better-adjusted performance in inflation. Silver still will be subject to the swings of industrial demand but because it is more about a short-term or tactical bet it is more appropriate.
The most winning investors will possess both but primarily the equities.
Final Thoughts
- Gold basis glorifies in the festivals, equities glorify over decades.
- Because it was once told to me by one of my guides:
- Gold is an emotional comforter. Shares provide economic freedom.
- In this Diwali, make your investments shine your future - not only your home.
Disclaimer:
This paper is an informative one. It is not financial advice. Investment decisions should be made with the help of a certified financial planner. Previous performance does not necessarily translate into future performance.
Source:
According to the publicly accessible information and publications, such as The Economic Times (October 20, 2025).