Gold Price History: Consider the rewards now if gold were just Rs 99 per 10 kilos

The first thing that springs to mind when we think of gold is how popular the precious metal is in our nation. Due to the gold’s enduring appeal throughout the years, India has become one of the world’s top consumers of the metal.

The price of 24 carat gold has increased seven times over the previous seven decades in India, from Rs 99 per 10 kilos in 1950 to Rs 74,050 in 2024. This represents a 750-fold return on investment. The price of this precious metal has not decreased since India gained its independence. An investment of Rs 1,000 in gold in 1950 would have risen to almost Rs 7.5 lakh by today based on this yield.

Gold reaches a record high.
According to HDFC Securities, the price of gold reached an all-time high of Rs 74,050 per 10 kilos on May 16, 2024.

Gold had a 9.18% Compound Annual Growth Rate (CAGR) return from 1950 to 2023. The CAGR from 1960 to 2023 was an astounding 10.51%. From 1970 to 2023, the rate of return was 11.55% CAGR.

From 1980 to 2023, the yield decreased to 9.28%. The documented return on investment for gold was 9.28% from 1990 to 2023. This return on gold investment was 12.05% from 2000 and 2023. The return has been consistent at 9.51% CAGR since 2010.

Prices of gold from 2000 until 2024
Investors in gold have reaped an almost 17-fold return on their investment since 2000, when the price of 10 kilos of the precious metal hit Rs 4,400.

Gold’s price spike to above Rs 49,000 per 10 grams during the pandemic in 2020 demonstrates why investors see it as a “safe haven” amid economic downturns. Following the COVID-19 pandemic, gold prices have continued to rise, surpassing Rs 65,500 per 10 kilos in 2023 and setting a new record of Rs 74,000 per 10 grams in 2024.

The rise in gold prices in the post-COVID era is mostly related to geopolitical concerns, namely in eastern Europe as a result of the Russia-Ukraine war in 2022 and the Israel-Hamas conflict in the Middle East in 2023.

Why is gold regarded as a secure investment?
Investing in gold is a common strategy used by people to protect their money from the effects of inflation and currency devaluation during uncertain economic times. Gold’s physical form and lasting worth have shown again and again that it is a comforting asset. Investing in gold acts as a hedge against market volatility, geopolitical unrest, and economic upheaval.

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