Gold's story begins around 6,000 BC in the Middle East, where it was first discovered in nugget form along riverbeds. Ancient civilizations like the Egyptians (around 3,000 BC) revered it as the "flesh of the gods," using it for jewelry, artifacts, and burial masks (e.g., Tutankhamun's famous mask). By 1,200 BC, the Lydians (modern Turkey) minted the first gold coins, institutionalizing it as currency.
In India, gold's history dates to the Indus Valley Civilization (3,300 BC), where it adorned royalty and temples. The Vedic texts (1,500 BC) mention "hiranya" (gold) as a symbol of prosperity. During the Mauryan Empire (321 BC), gold coins like the "suvarna" standardized trade. The British Gold Standard (1816) globalized gold's monetary role, though India shifted to fiat currency post-independence.
The 20th century saw gold's decoupling from currencies (Bretton Woods end in 1971), turning it into an investment asset. Today, central banks hold ~35,000 tons as reserves, and annual mining (~3,000 tons) meets demand. By 2025, gold remains a hedge against inflation, with prices influenced by geopolitics (e.g., Russia-Ukraine war spikes).
Discovered: Around 3000 BC, among the earliest metals used by humans.
Symbol: Au (from Latin aurum).
Atomic Number: 79.
Unique Properties: Bright metallic yellow, dense, malleable, ductile, corrosion‑resistant.
Archaeological Evidence: Gold artifacts found in Bulgaria (Varna Necropolis, ~4600 BC) and in Paleolithic caves (~40,000 BC).
Importance & Uses Across Sectors
Jewelry & Ornamentation (50%): Largest consumer of gold globally (~50% demand).
Finance & Investment (25% - 30%): Coins, bars, ETFs, sovereign gold bonds.
Central Banks: Reserve asset for currency stability.
Electronics (7% - 10%): Conductivity, corrosion resistance (used in connectors, semiconductors), switches, and chips in smartphones, computers, and EVs.
Medical (2% - 5%): Dentistry, implants, cancer treatment (nanoparticles).
Aerospace: Coating for satellites and spacecraft (reflects radiation).
Luxury Goods: Watches, decorative art, premium branding.
Industrial Catalysts: Used in chemical processes due to inertness.
Year-wise Gold Price and Returns (1995–2025):
Year
10g Price (24K, INR)
Annual Return (%)
Cumulative CAGR from 1990 (%)
1990
3,200
N/A
N/A
1991
3,466
8.31%
8.31%
1992
4,334
25.04%
16.41%
1993
4,140
-4.48%
9.00%
1994
4,598
11.06%
9.49%
1995
4,680
1.78%
7.92%
1996
5,160
10.26%
8.27%
1997
4,725
-8.43%
5.72%
1998
4,045
-14.39%
2.97%
1999
4,234
4.67%
3.17%
2000
4,400
3.92%
3.23%
2001
4,300
-2.27%
2.70%
2002
4,990
16.05%
3.78%
2003
5,600
12.22%
4.35%
2004
5,850
4.46%
4.27%
2005
7,000
19.66%
5.24%
2006
8,400
20.00%
6.01%
2007
9,500
13.10%
6.38%
2008
12,500
31.58%
7.68%
2009
14,500
16.00%
8.03%
2010
18,500
27.59%
8.92%
2011
26,400
42.70%
10.37%
2012
31,050
17.61%
10.62%
2013
29,600
-4.67%
10.00%
2014
28,006
-5.38%
9.42%
2015
26,343
-5.93%
8.87%
2016
28,623
8.65%
8.90%
2017
29,667
3.65%
8.64%
2018
31,438
5.97%
8.52%
2019
35,220
12.01%
8.72%
2020
48,651
38.16%
10.09%
2021
48,720
0.14%
9.75%
2022
52,670
8.10%
9.67%
2023
65,330
24.04%
10.26%
2024
77,913
19.25%
10.64%
2025
1,05,000
34.76%
11.48%
Insights:
- Starting price (1990): ₹3,200 per 10g
- Ending price (2025): ₹105,000 per 10g
- Total absolute return: +3,181% (price multiplied ~32.8 times)
- Overall CAGR (35 years): 11.48% → ₹1 lakh invested in gold in 1990 would grow to ~₹32.81 lakh by 2025 → This has outperformed most fixed-income options (FDs ~6–7% CAGR) and beaten inflation (~6–7% average) over the long term.
Gold has delivered steady long‑term CAGR (~8–9%), outperforming inflation.
Absolute returns look massive because of compounding over 35 years.
Gold is best used as a hedge (5–15% of portfolio), not as a primary growth asset.
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