Synopsis: Over the last five years, silver delivered the highest returns at about 215.62%, followed by gold at 171.10%, while the Nifty50 lagged with a solid but lower gain of 94.18%.
Investing money wisely is one of the most important financial decisions we all make. Whether we are saving for retirement, our children’s education, or simply growing our wealth, choosing the right investment matters.
Three well-known investment choices in India are the Nifty50 stock market index, gold, and silver. Each of these assets behaves differently and serves different investment goals. But in the last 5 years, which one has given a better return? Let’s explain this in a simple and clear way.
The last 5 years have been quite an adventure for investors. We saw the COVID-19 pandemic cause a big crash in 2020, then a strong recovery. There were global tensions, rising inflation, a weakening rupee at times, and economic growth in India.
All these events affected investments differently. Stocks bounced back quickly as companies earned more profits. Gold and silver shone brightly as people looked for safety and as prices rose due to world demand.
Understanding the Three Investment Options
Nifty50 Index: The Nifty50 is a stock market index of the top 50 companies listed on the National Stock Exchange (NSE). It reflects the overall performance of big Indian companies across sectors like finance, technology, energy, and consumer goods. If the Nifty50 rises, it means the stock market is generally doing well.
Gold: Gold is a precious metal that has long been the favourite of Indian households. People buy gold in the form of jewellery, coins, bars, or ETFs. It is viewed as a “safe haven” asset — something that holds its value during economic troubles and protects purchasing power over time.
Silver: Silver is another precious metal, often called the “poor man’s gold”. It has everyday industrial uses too, in electronics, solar panels, and medical devices, which sometimes gives it an extra push in price apart from just being an investment.
Performance of Nifty50 Index, Gold, and Silver:
Nifty50 Index:
Over the last five years, the Nifty50 has given solid returns as the Indian economy continued to grow and businesses reported profits. On December 21, 2020, the Nifty50 Index was around 13,328 points. Today, it’s around 25,880 points.
If you invested in a Nifty50 index fund, your money would have grown to about Rs 1.94 lakh on a Rs 1 lakh investment, including some dividends from companies. The Nifty50 Index return is about 94.18 percent over the last five years, with a CAGR of around 17.98 percent for the same period. But in 2025, the Nifty rose only about 8-9 percent, much less than gold.
Gold:
Gold has also done very well in the same period. Gold prices rise when investors get worried about inflation, currency weakness, or global uncertainty. Because of the pandemic, geopolitical tensions, and economic shifts around the world, gold has been attractive to many investors looking to protect their savings.
Five years ago, on December 21, 2020, the price of 10 grams of 24-karat gold was around Rs 49,712. Today, in December 2025, it’s around Rs 1,34,770. That means if you invested Rs 1 lakh in gold back then, it would be worth about Rs 2.71 lakh now.
Gold futures return is about 171.10 percent over the last five years, with a CAGR of around 28.23 percent. Gold did especially well in recent years, rising over 75-80 percent just in 2025 alone, because of global uncertainties and strong demand.
Gold doesn’t produce income like stocks do, but it is considered a good store of value. In times of crisis or high inflation, gold often holds its ground better than other assets. Indian households also love gold because of cultural reasons; it’s part of weddings, festivals, and gifts.
Silver:
Silver has been the star performer among the three in recent years. While gold and the Nifty50 have shown strong returns, silver has outpaced both with returns of around 165 percent over the last five years.
In December 2020, silver was around Rs 65,604 per kilogram. Today, it’s around Rs 2,07,060. That gives a return of about 215.62 percent overall, or sometimes more if prices spiked higher in 2025.
Silver surged a lot in 2025, up 135-140 percent in this year. But over the full 5 years, its CAGR is around 33.29, higher than gold. Silver is more volatile, meaning it can go up fast but also down fast.
Silver’s rally has been fueled not just by its role as a precious metal but also by its industrial demand, especially in technologies like solar energy, electronics, and electric vehicles. These industries have been growing fast globally, lifting silver prices higher. In 2025, silver hit record price levels, showing strong investor interest.
Conclusion:
Over the last five years, all three assets, Nifty50, gold, and silver, have delivered strong returns, but silver clearly outperformed, followed by gold, while Nifty50 came third. Stocks offered steady, growth-driven gains, gold provided stability and inflation protection, and silver rewarded investors with exceptional returns despite higher volatility. The results highlight the importance of diversification, as different assets shine under different economic conditions.
Written By – Nikhil Naik
Disclaimer
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