Shares shine brighter than gold: With 124% return in 2019-25, Indian stocks beat yellow metal

Indian equities have narrowly outperformed gold over the past six years, even as the precious metal surged on safe-haven demand during a period of heightened geopolitical uncertainty, according to the latest Bits and Pieces report from research firm CLSA.

The Nifty 50 index rose 124 per cent between August 2019 and August 2025, just ahead of gold’s 117 per cent gain. By contrast, Chinese A-shares posted a modest 6 per cent increase over the same period, showing the divergence in equity performance across Asia.

Tech and crypto lead global rally

The standout performer globally was Nvidia, whose share price skyrocketed 4,225 per cent from $4 in 2019 to $173 in 2025, driven by the semiconductor boom and surging demand for AI-related hardware. The “Magnificent 7” Index (comprising Alphabet, Amazon, Apple,  Meta Platforms, Microsoft, Nvidia and Tesla) jumped 766 per cent, cementing big tech’s dominance in global equity returns, Economic Times reported.

Bitcoin also staged a meteoric rise, climbing 1,001 per cent to $114,641, buoyed by mainstream adoption and public endorsements from the US president. The MSCI World Index, a benchmark for global equities, advanced 74 per cent.

Macroeconomic backdrop

The report places these gains against a backdrop of expanding global liquidity and rising debt levels. Global GDP grew 26 per cent over the period to $111 trillion, while global debt rose 27 per cent to $324 trillion. US government debt jumped 68 per cent to $37 trillion.

Bond markets were the exception to the broader asset rally, with the Bloomberg Barclays Global Aggregate Bond Index slipping 2 per cent as rising interest rates weighed on fixed income returns.

Safe-haven demand drives gold

Gold’s 117 per cent advance was fuelled by its role as a hedge against uncertainty, particularly after the Russia-Ukraine war erupted in 2022. Silver outperformed gold on a percentage basis, rising 124 per cent to $37 an ounce, aided by its dual role as a precious and industrial metal.

Outlook

CLSA’s findings underline the widening gap in performance between technology-focused assets and more traditional investments. While the Nifty’s performance signals resilience in India’s equity market, the scale of Nvidia’s rally and the rise of cryptocurrencies point to an investor preference for growth sectors capable of capitalising on structural technological shifts.

The data also highlights that, despite macroeconomic headwinds, global risk appetite has remained strong, with liquidity and leverage fuelling returns across multiple asset classes.