Gold Investment Returns Calculator
Gold has delivered ~11–13% CAGR in INR over 20 years, making it a reliable long-term hedge. This calculator estimates future gold value for physical gold, digital gold/ETFs, or Sovereign Gold Bonds (SGB) — which offer an additional 2.5% interest. Compare gold returns against FD and equity.
Frequently Asked Questions
Which form of gold gives the best returns?+
Sovereign Gold Bonds (SGB) are the best financial investment in gold — they give the same price appreciation as physical gold PLUS 2.5% annual interest, and long-term capital gains are tax-free on maturity. Gold ETFs/digital gold are second (no making charges, no storage). Physical gold has making charges (10–25%) and storage costs that erode returns.
What has been the historical gold return in India?+
Gold has returned approximately 11–13% CAGR in INR over 20 years (2004–2024). However, returns are lumpy — gold can go sideways for years and then surge. It's best held as 10–15% of a portfolio for diversification and inflation hedge, not as a primary wealth creator.
Is gold investment taxable?+
Physical/digital gold: taxed as LTCG at 20% with indexation if held 3+ years; STCG at slab rate. Sovereign Gold Bonds: interest is taxable at slab rate; capital gains on maturity (8 years) are fully tax-exempt — making SGB the most tax-efficient form. Gold ETFs: LTCG at 20% after 3 years.
How much gold should I hold in my portfolio?+
Most financial planners recommend 10–15% of portfolio in gold. Gold's main role is as a hedge — it tends to rise when equities fall and during global uncertainty. Holding more than 15–20% in gold can drag long-term portfolio returns below equity.