The year 2023 witnessed remarkable returns for investors with the stock markets hitting new highs. Amid the bull run in the stock markets the investors made substantial profits across different asset classes. Both the gold and stock market investments have helped the investors to accumulate wealth.
While the key benchmark indices, Nifty and Sensex, surged to new highs, gold price also surpassed Rs 60,000 mark for the first time in 2023. As the benchmark indices have seen a marginal decline in the first week of the new year, ending January 5, 2024, investors are faced with a dilemma — whether to bet more on gold or shares.
Benchmark indices, Nifty and Sensex ended 2023 with more than 18 per cent and 20 per cent gains, respectively. While stock investments have given significant returns to investors those opted for gold were not disappointed either. In 2023, gold has given 15% return.
Now, investors are analysing the potentiality of higher returns on investments in both the gold and stocks. However, it’s important to consider a few key factors before choosing the right instrument.
Stock Markets
According to equity and stock market expert Kunj Bansal, the key benchmark indices, Nifty and Sensex, are poised for excellent performance in 2024. He predicts that by the end of the year, the Sensex could surpass 83,250 level while the Nifty may breach the 25,000 mark. As of January 8, the Sensex closed at 71,355.22 while Nifty50 closed at 21,513. If Bansal’s projections become true, investors could witness a rise of approximately 12,000 points in 2024, equating to a return of about 14.41 per cent.
Gold
Ajay Kedia, director of commodity firm Kedia Advisory, anticipates a surge in gold prices in 2024 due to the prevailing global market situation and inflationary pressures. Gold closed 2023 at Rs 63,203, providing investors with a remarkable return of 14.88 per cent. Gold futures, maturing on February 5, 2024, stood at Rs 62,511 per 10 grams on the MCX, after recording a marginal dip of Rs 182 or 0.29 per cent. The previous close was recorded at Rs 62,557.
Both the stock market and gold have the potential to deliver double-digit returns in 2024. Investors with a higher risk appetite may choose to allocate more funds to the stock market, while those inclined towards lower risk may opt for gold. Given the ongoing global market uncertainties, gold appears to inspire more confidence, with expectations of price surged aided by increased demand.
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