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Gold vs. Stocks: Which Investment Is Better in 2025?

April 15, 2025
 
Gold vs. Stocks: Which Investment Is Better in 2025?

Table of Contents

    Modified On:

    April 15, 2025

    Gold or stocks— what suits your investment goals? Understand pros, cons, performance, and tips for 2025.

    Earning money and investing money are both complex and essential for everyone. No matter which stage of life you’re at, it’s never too late or too early to learn money management. 

    However, the big question is, which asset is best for investing? Today, we have a variety of options, such as shares, mutual funds, real estate, cryptocurrency, gold, gold bonds, digital gold, and more. 

    We’re going to discuss which asset you should invest in. Is it gold or stocks? Let’s find out!

    Gold as an Investment

    In India, gold has great cultural and sentimental significance and is typically regarded as a sign of stability and prosperity. 

    It began as merely a precious metal but has since developed into a reliable investment vehicle that provides stability, liquidity, and inflation protection. 

    Modern investors can now invest in gold more easily and conveniently thanks to digital gold and gold exchange-traded funds (ETFs).

    Gold has four important functions in a portfolio of investments. It serves as a diversifier, reducing losses when the market is volatile. 

    Over time, it offers steady growth as a source of long-term returns. Due to its superior performance over fiat currencies, gold is also a liquid asset with no credit risk.

    It also adds stability and growth potential, which improves the performance of the entire portfolio and makes it a valuable asset for investors.

    Start your gold investment journey and save money in digital gold on the Jar App!

    Investing in Stocks

    Imagine becoming a tiny boss of a big company—yes, that’s what happens when you buy a stock! You receive a portion of the company's income in addition to owning a tiny stake in it.

    Your stock value may increase and you may even receive more income in the form of dividends if the business performs successfully. Exciting, right?

    But keep in mind that, like a rollercoaster, the stock market can rise or fall depending on the state of the economy and the firm.

    The good part? Buying and selling stocks is simpler than selling gold. Therefore, stocks may become your new best buddy if you're searching for fast moves and large returns—just make sure to wear a seatbelt!

    Check out these investment mistakes to avoid in a bull market.

    Gold vs. Stocks— What is better for investment?

    Feature

    Gold

    Stocks

    Ownership

    Physical or digital ownership of gold

    Fractional ownership in a company

    Returns

    Steady returns over long term

    Potentially high returns (capital gain + dividends)

    Risk Factor

    Low to moderate risk

    High risk due to market volatility

    Liquidity

    Moderate (depends on how you own it)

    High – can be bought/sold instantly on stock exchanges

    Volatility

    Less volatile, more stable

    Highly volatile – can fluctuate daily

    Usage

    Can be worn (jewellery), gifted, or stored

    Purely investment

    Inflation Hedge

    Strong – protects value during inflation

    Mixed – depends on company performance

    Ease of Investment

    Easy via digital gold or jewellery stores

    Requires demat account & some market knowledge

    Emotional Value

    High (cultural & traditional significance)

    Low emotional attachment

    Bottom Line

    Both stocks and gold offer special advantages. Gold is a fantastic option if you're searching for emotional value, stability, and a long-term storage of wealth.

    However, stocks can help you increase your money more quickly if you're looking for better returns and don't mind taking on a little risk.

    A wise investor frequently chooses both, weighing growth (stocks) against safety (gold) based on their objectives and risk tolerance.