From instinct and even traditionally, Indians have been investing in physical assets. Be it property or precious metals. With increasing transparency and easier tools to understand and manage your shares, the stock market is a popular alternative to such investments. Risks are associated in both cases.
The nature of both popular investments today i.e., gold and the stock market are not so different. In fact, both are bought at low prices and sold at higher prices with changing prices each day. However, whenever the economy goes down, investments in gold increase as it is considered a safer option as compared to stocks.
A simple rule is to invest in the asset which is cheaper at a particular point of time. There are various complex rules when it comes to investing, but keeping this rule in mind can even benefit an amateur trader or investor.
There are various essential things to keep in mind as well, like tax returns, period of investment, purpose of investment, etc. Another smart thing is to do is exit when the price is right, i.e., if you are a prudent investor but don’t keep updated with the market, let go of your investments when you think the price is right. Hoping that the price will increase can get you into serious trouble at times.
One cannot ideally give you a straight answer to which investment is better. It largely depends upon the purpose of your investment and your needs. And, the best way to do safer investments is by reading up and researching the market trends and news.