Gold vs Nifty: Is the Stock Market About to Crash? | The 2.67 Gold Ratio Explained

Описание: Is it time to shift your money from stocks to gold? In this video, we analyse why Gold has surged 52% this year while the Nifty has only grown by 1%. We explore the critical Gold-to-Nifty Ratio, which currently stands at 2.67—a level that has historically signalled major market shifts,.
Key Insights from the Sources:
• The 2.67 Ratio: Historically, when this ratio hits the 2.3 to 2.65 range, the Nifty has seen massive rallies (up to 77% in 9 months following the 2009 crisis),. However, there is a 40-50% probability that this time the stock market may hold or go down while money moves into gold,.
• Risk vs Return: Over 5, 10, and 20-year periods, gold has often outperformed or matched the stock market with significantly less volatility (15-18% for gold vs 22-26% for Nifty).
• The Sharpe Ratio: Gold is considered one of the best assets for risk-adjusted returns,. To maximise your portfolio's Sharpe Ratio, the ideal gold allocation is approximately 17%,.
• Why Gold is Rising: Central banks bought a record 1,044 tons of gold in 2024 to hedge against the devaluation of the US Dollar. Because gold is a limited "store of value," its demand increases as currencies lose value,.
• Recommended Allocation:
◦ 20s/Early 30s: ~10% in gold.
◦ 30s to 40s: 15% to 18% in gold.
◦ 40s and beyond: 20% to 25% in gold.
• How to Invest: We recommend Gold ETFs (like SBI, Kotak, or Nippon India’s Gold BeES) or Digital Gold over physical gold to avoid GST and storage complexities,,.
Warning: Do not exceed a 25% allocation in gold, as it is a non-productive asset that does not generate dividends or output like a company or real estate does,.