He emphasised that the limited downside risk and relatively strong upside potential make gold a compelling investment choice at the current levels.
“After a rally, the biggest risk is entering an asset class that’s already peaked. But in gold’s case, I believe downsides are going to be limited,” he added.
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Beyond investment returns, Azeez highlighted a shift in the way Indians are approaching gold. “Most people are now adding gold not for its ornamental value but as an asset class. While affordability is becoming a concern, especially for heavier pieces, smaller ticket investments—like one or two-gram coins and bars—are gaining traction,” he said.
Azeez also touched on Indians’ emotional attachment to physical gold. “I gifted my sister one crore worth of gold ETF. She wanted to sell it last year but never touched her physical gold,” he shared, underlining the enduring appeal of tangible gold in Indian households.
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When asked about gold’s role as a hedge, Azeez backed it with data. Over the past eight years, gold has consistently delivered positive returns during periods when the Nifty saw corrections. For instance, during the 2017-18 peak-to-trough period, the Nifty fell 10% while gold rose 3%. Similarly, between September and October 2023, while the Nifty declined by 6.6%, gold again posted a 3% gain.
“Every time the Nifty has declined from peak to trough, gold has stayed positive. So does it pass the hedge test? Absolutely,” Azeez said.
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While gold’s average five-year return of 17.44% is slightly below the Nifty’s 18.78%, Azeez believes gold is proving itself as a “great debt replacer” and an increasingly mainstream asset in portfolios.
For the full interview, watch the accompanying video
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First Published: Apr 16, 2025 4:47 PM IST
