Gold vs Titan: 10 year Comparison

Gold is one of India’s most preferred investment options and Titan is the industry leader in the Jewellery business.

If we could go back 10 years and invest in Gold or some shares of Titan – which of the two would give us better returns?

Let’s get to the numbers:

YearGold 10 GramsTitan (1 share)
2010₹ 19,000₹ 75*
2020₹ 41,000₹ 1180
Gains2.16 times15.73 times

Suppose you invested 1 lakh rupees equally in Gold and Titan in January 2010. You would have around 52 grams of Gold and 1333 shares of Titan.

The value today would be:

YearGold 52 gramsTitan 1333 shares
2010₹ 1 lakh₹ 1 lakh
2020₹ 2.16 lakhs₹ 15.73 lakhs

Some points that are worth reading:

  • The return on Titan is approximately 7.3 times more than Gold!
  • The 15.73 lakh value of 1333 shares of Titan does not include the yearly dividends. For example, from the year 2013, if you were holding 1333 shares of Titan – you would’ve received dividends worth ₹ 26,726.
  • Just because the last 10-20 years have been outstanding for Titan, does not mean the company will continue its staggering growth in the next 10 years. Do your own research before investing in Titan or Gold.
  • Rakesh Jhunjhunwala is the biggest individual shareholder in Titan. He owns more than 4.5 crore shares, the value of which is more than ₹ 5300 crore.
  • Jhunjhunwala’s wife Rekha holds more than 1.2 crore shares of Titan, the total value is more than ₹ 1400 crore.
  • Rakesh Jhunjhunwala first purchased Titan in 2002-03 at an average price of ₹ 3 per share! The value per share is ₹ 1180 today (Jan 17 2020). The returns are 393 times – not including dividends!
  • If Jhunjhunwala had tried to play safe and purchased Gold instead of Titan shares, the value would increase by 8.5 times instead of 393 times in Titan.

*Note: The share value of Titan in the first table has been adjusted for 1:10 Split and 1:1 Bonus in 2011.

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