What are Gold Returns?

Gold Returns : Between 1970 to 2011, gold has given a return of almost 10 percent. This
is more than inflation in most countries. The return on investment in gold for last 10 years
in given below:
Gold Returns
Year Gold Returns (%)
2002 23.9
2003 14.8
2004 0.5
2005 24.2
2006 20.8
2007 16.5
2008 28.8
2009 19.3
2010 22.3
2011 28.4
Average 18.00
Source: The Economic Times, October 24, 2011.
Above table reveals that gold is the best performing asset class in the last decade. It is
often said that gold is the ultimate repository of monetary value, the ultimate hedge against
inflation. It is necessary to be clear about the objectives and time horizon while buying
gold. It is a good thing that mean Indian households buy gold, simply to hold for decades
on end. The average return on gold for last 11 years was 18%. Average return on sensex
for 10 years was 15.2 percent, PPF 9% and Bank Deposits 10.5% as compared to 19.5%
on gold.