The correlation between gold and Nifty has caught some attention in recent times. Both are considered a great investment for beginners as well as experienced traders. But both of them have their drawbacks as well as advantages. So, which one should you invest in?
Before you start investing, we advise you to enrol in an online stock marketing course that will make you familiar with the overall working of the stock market.
Various factors are to be kept in mind before you invest in gold and Nifty 50. For now, let's start with the basics.
What is Gold?
Gold is considered the most precious metal in Indian culture. We use it on various occasions from marriages to the birth of a baby. Gold has also been considered a very safe investment for many decades.
The high demand for gold and its scarcity are the key factors contributing to its price stability and an attractive long-term investment. Many investors still consider gold as a safe investment against periods of inflation and recession.
There have been various instances in the past where gold has turned out to be a safe and profitable investment. Notably, during the 2008 financial crisis when markets around the world crashed, gold prices surged. Also, in COVID-19, when various markets suffered significant losses, gold prices remained stable.
What is Nifty?
Nifty or Nifty 50 is a stock market index of NSE (National Stock Exchange). It includes the top 50 companies listed on the NSE. The Nifty has always been a reflection of the confidence that investors have in the stock market. In a way, one can always figure out the overall performance of the market by just looking at the Nifty 50.
Nifty is also a volatile investment. During times of market turmoil like the 2008 financial crisis and the COVID-19 pandemic, Nifty saw a drop. But, in periods of bullish runs, Nifty tends to experience gains. In 2014, when the market was on a bull run as a result of the parliament elections, Nifty saw a good rise. If you are not familiar with bullish and bearish market runs, then enrolling in some share market courses would be really helpful.
Which One Should You Choose?
As you saw, gold has been historically considered a safe investment while Nifty has been at the forefront during bullish runs.
Conclusion
There are still many factors in the "Gold vs. Nifty" debate, and when to invest in Gold and when to invest in Nifty 50. A stock market master class like "Gold to Nifty Rotation Secrets" by Dharmil Bavishi can teach you everything from the basics of gold market and Nifty to when to exactly buy and sell with confidence to get guaranteed profit.
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