New Delhi: Stocks continue to outshine gold and silver when it comes to adding to investors' wealth by giving 8 per cent return in 2014. The BSE 30-stock benchmark index, Sensex, has generated a positive return of 8 per cent for investors in 2014. Gold prices rose by 2.14 per cent and on the other hand, silver fell by 1 per cent. Gold was at Rs 29,800 per 10 grams on December 31, 2013 and silver was at Rs 43,755 per kg.
While, gold closed at Rs 30,440 per 10 grams yesterday, silver was at Rs 43,300 per kg. On the other hand, Sensex, which was at 21,170.68 points on December 31, closed at all-time high of 22,876.54 on Wednesday.
After outperforming stock market for more than a decade, gold has been on a back foot for more than two consecutive years now vis-a-vis equities. Market experts said that gold's under-performance compared to stocks this year is mainly due to robust foreign funds investment in Indian equities. Official reports also stated that stock market sentiment has improved on the hopes that a strong, pro-reforms government will come to power after the ongoing general elections are over in mid-May.
Investors also expect that the Indian economy should improve and the inflation eases as well. "Emerging markets globally have done well in 2014. Improvement in the world economy has brought the risk appetite back amongst retail investors and this has drenched the liquidity from safe havens such as gold leading to its under-performance, an expert said.
In 2013, the Sensex gave a positive return of about 9 per cent to investors, while gold prices fell by about 3 per cent and silver plummeted close to 24 per cent. In 2012, the Sensex rose by over 25 per cent, which was nearly double the gain of about 12.95 per cent in gold prices. The appreciation in silver was at about 12.84 per in 2012. Gold is normally preferred as a hedge against inflation, and investors tend to park their money in bullion considering it a safer bet in times of market uncertainties.
