'When gold feels safest': Coinswitch founder warns investors may be chasing wrong asset again
The Nifty 50 has stalled around the 25,000–25,800 range in recent months, appearing sluggish compared to glittering gold. This has reinforced a behavioral trend: pausing SIPs and redirecting money into gold, seen as a safer bet amid global economic uncertainties.
- Sep 18, 2025,
- Updated Sep 18, 2025 5:40 PM IST
Gold has surged to record highs, but historical data suggests the real opportunity may lie elsewhere — in equities.
While Indian families are dumping mutual funds to buy gold, Coinswitch co-founder Ashish Singhal says this may be a classic case of mistiming the market.
“Your grandmother’s gold vs your SIP. Who’s winning right now? Definitely grandma,” Singhal wrote on Linkedin, pointing to gold’s record ₹1,02,191 per 10 grams in September 2025 — a 40% jump this year. But he followed it with a sharp warning: every time the Nifty-to-Gold ratio hit these oversold levels in the past two decades, equities came roaring back.
Singhal isn’t giving advice — just history. But the numbers tell a compelling story.
The Nifty 50 has stalled around the 25,000–25,800 range in recent months, appearing sluggish compared to glittering gold. This has reinforced a behavioral trend: pausing SIPs and redirecting money into gold, seen as a safer bet amid global economic uncertainties.
But history disagrees.
Analysis shows that when the Nifty-to-Gold ratio hits long-term support levels — currently hovering near 2.3–2.65 — it often precedes powerful stock market rallies. From 2004 to 2020, every major ratio bottom led to Nifty gains of 40% to 190% in the following months. The average? A staggering 125% in just over two years.
Despite this, retail investors continue to chase gold at highs and exit equities at lows — a textbook case of "buy high, sell low," Singhal remarked.
“When gold feels safest, equities often deliver the best returns,” he noted.
Gold has surged to record highs, but historical data suggests the real opportunity may lie elsewhere — in equities.
While Indian families are dumping mutual funds to buy gold, Coinswitch co-founder Ashish Singhal says this may be a classic case of mistiming the market.
“Your grandmother’s gold vs your SIP. Who’s winning right now? Definitely grandma,” Singhal wrote on Linkedin, pointing to gold’s record ₹1,02,191 per 10 grams in September 2025 — a 40% jump this year. But he followed it with a sharp warning: every time the Nifty-to-Gold ratio hit these oversold levels in the past two decades, equities came roaring back.
Singhal isn’t giving advice — just history. But the numbers tell a compelling story.
The Nifty 50 has stalled around the 25,000–25,800 range in recent months, appearing sluggish compared to glittering gold. This has reinforced a behavioral trend: pausing SIPs and redirecting money into gold, seen as a safer bet amid global economic uncertainties.
But history disagrees.
Analysis shows that when the Nifty-to-Gold ratio hits long-term support levels — currently hovering near 2.3–2.65 — it often precedes powerful stock market rallies. From 2004 to 2020, every major ratio bottom led to Nifty gains of 40% to 190% in the following months. The average? A staggering 125% in just over two years.
Despite this, retail investors continue to chase gold at highs and exit equities at lows — a textbook case of "buy high, sell low," Singhal remarked.
“When gold feels safest, equities often deliver the best returns,” he noted.