How much does gold worth ₹100 in 1985 cost now?
What's the story
Gold prices have seen a significant rise lately, thanks to strong global cues. On the Multi Commodity Exchange (MCX), February gold contracts rose by 0.55% to trade at ₹1,35,150 per 10g. A recent WhiteOak Capital report has highlighted gold's effectiveness as a hedge against volatility and inflation over nearly four decades. The analysis shows that ₹100 invested in gold in 1985 would have grown to ₹6,518 by March 2025. This exceeds bank deposits (₹2,100) during the same period.
Resilience
Gold's performance across decades highlights resilience
Gold has delivered an 11% CAGR in the decade starting 1985, accelerating to 14.3% in the decade starting 2005, and maintaining a strong 12.9% CAGR through the 2015 decade. These figures show gold's persistent appeal across different economic conditions. Its average rolling CAGR of 10.2% since 1985 has consistently outperformed the bank deposits (8.1%) and inflation (7.2%), confirming its long-term strength as an investment asset class.
Counter-cyclical asset
Unique ability to act as a counter-cyclical asset
The financial year-wise index performance in the WhiteOak report confirms gold's unique ability to act as a counter-cyclical asset. In many years when domestic equities delivered negative returns, gold had posted sharp gains, providing meaningful downside protection and also smoothing portfolio volatility. From FY2011 to FYTD 2026, gold generated a 13.9% CAGR, making it the second-best performer among tracked asset classes, behind only S&P 500 TRI (INR).
Hedge
Consistent hedge during equity downturns
The MCX Gold has acted as a consistent hedge, generating positive returns during several equity downturns. It recorded gains of 32.9% in FY2012 and 29.7% in FY2020. These figures highlight gold's twin role as both a growth and risk-mitigating investment.