We always hear about gold being risk-free, especially in India. But zoom out, and things look different:
- A big chunk of gold’s “growth” in India is just rupee depreciation.
- Adjusted for inflation, gold has underperformed US equities.
- It’s not as liquid or secure globally as most people assume—central banks still worry if their US gold is actually safe.
- And let’s not forget: if you’d bought at the peak in 1980, you’d have waited 27 years just to break even.
So why is gold still marketed as this holy grail of safety? Because it feels secure? Because it’s culturally accepted? How much of your portfolio is in gold?
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Indian families by default will buy gold jewellery. This to me is more than sufficient as an alternate investment.
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People love gold because it feels safe and shiny. It’s been around forever and everyone trusts it. Gold doesn’t disappear if a company crashes or if stuff goes crazy, so it’s like a safety pillow. But gold won’t make you super rich fast. That’s why most people only put a little bit of their money, like 5% or 10% in gold.
It’s kinda like having a lucky charm in your pocket just in case bad stuff happens like war or something. Having said that personally gold also makes you shine when you wear it with appreciation of value too 
What is generational wealth?
A: Anything which is scarcity in nature can be considered as an asset
example; (Natural) Land, Gold, Silver, Copper. (Man-made) Equities, Cryptos.
Currency cannot be considered as an asset. As it can depreciate and can be reproduced.
And yes! Gold is still a safe heaven. Then you answer me why every country reserves gold as an asset for the crisis. Whoever the columnist is, nobody is perfect in economics. Because in economics everything correlate.
Gold isn’t a growth asset. It is a safe haven hedge for times of volatility. I don’t expect to 10x my capital in gold but I also don’t expect to have my money lose a significant amount of its value.
Given the recent turmoil in the US treasury market, Gold is now emerging as the new safe haven asset.
