Commodity – Bullion

Commodity – Bullion Investments in gold and silver are considered one of the most popular investment avenues. Gold and silver over a long-term period has appreciated in value. Investments in these metals have yielded a CAGR return of approximately 8% over the last 20 years. There are several ways to invest in gold and silver. One can choose to invest in the form of jewelry or Exchange Traded Funds (ETF). Going back to our initial example of investing the surplus cash it would be interesting to see how much one would have saved by the end of 20 years considering he has the option of investing in any one – fixed income, equity or bullion.By investing in fixed income at an average rate of 9% per annum, the corpus would have grown to Rs.3.3 Crs 1.By investing in fixed income at an average rate of 9% per annum, the corpus would have grown to Rs.3.3 Crs 2.Investing in equities at an average rate of 15% per annum, the corpus would have grown to Rs.5.4 Crs 3. Investing in bullion at an average rate of 8% per annum, the corpus would have grown to Rs. 3.09 Crs Clearly, equities tend to give you the best returns especially when you have a multi – year investment perspective.