Zerodha’s Nithin Kamath Highlights Gold’s Strong Investment Returns

MUMBAI, India — Zerodha CEO Nithin Kamath recently underscored the impressive performance of gold as an investment, revealing that it has outperformed the Nifty 50 index since 2000.

In a post on the social media platform X (formerly known as Twitter), Kamath emphasized that gold has produced a remarkable 2,000% return over the last 25 years, eclipsing the Nifty 50’s 1,470% increase. His remarks come in the wake of the Indian government’s recent halt on the issuance of Sovereign Gold Bonds (SGBs), which he sees as a pivotal moment for investors seeking gold exposure.

Kamath pointed to Gold Exchange-Traded Funds (ETFs), particularly Zerodha AMC’s new GOLDCASE ETF, as an optimal alternative for those wanting to invest in gold amid rising prices and global economic uncertainties. “We couldn’t time the launch of the GOLDCASE any better. First, gold prices started shooting up, and then the stopping of sovereign gold bonds,” he stated.

As inflation rises and global uncertainties loom, many investors are turning to gold as a reliable hedge. In light of SGBs no longer being an option, Kamath believes Gold ETFs present the best path for Indian investors looking for accessible gold investments.

Gold is traditionally viewed as a safe-haven asset, ideal for portfolio diversification, particularly during economic turmoil. While its price can fluctuate unpredictably, Kamath noted, “Gold has been kind to Indian investors and has provided some diversification benefit. Nobody can explain what makes gold prices move, but it seems to work.”

On April 3, the price for 10 grams of gold reached Rs 93,380 for 24-karat gold, up over 18% since the start of the year, prompting many to consider gold as a strong asset class amid troubling market conditions. Kamath elaborated on his findings, stating, “It’s crazy that since 2000, gold seems to have generated higher returns than Nifty. This data could encourage more investors to consider it as a reliable funding source.”

In addition to encouraging investments in Gold ETFs, Kamath’s statements reflect a growing confidence among investors regarding gold’s role as an alternative investment to stocks, particularly for wealth preservation during uncertain times.