SensexVsGoldINR

Left Axis: Sensex And Gold Price
Right Axis : %diff between  Sensex and Gold.
Horizontal Axis: Time Series.


Whenever you see very high Diff % in any asset class Equity or Gold. It would be prudent to start shifting toward under performer in slow manner.

Gold Can stay under performer for long time but staggered accumulation via asset allocation between Gold and Equity is better option

We don't know bottom of any asset and when it will hit turf and start moving upwards so better option is to have asset allocation policy which help you to navigate.

Sovereign Gold Bond should be considered instead of physical gold as it provides extra income plus backed by Government.

Only Diff on Time series:

HIstorical Charts

Nifty Valuation Just via NIFTY index is misleading when we include dividend it gives clear picture so whenever you compare any instrument with equity index try to use TRI instead of index. Now we have TRI data available from NSE and BSE.I have used NSE data and created chart.

Now if we see it on log scale. To understand we benefit maximum by going in early to create extra edge in return. As base becomes higher return percentage drops.