InvestorQ : Can you tell what I should buy at current prices; Reliance stock or Gold?
diksha shah made post

Can you tell what I should buy at current prices; Reliance stock or Gold?

Answer
user profile image
shrinidhi Rajan answered.
2 months ago


That is a tough question but let us look at the pros and cons of both these asset classes. Reliance has just completed monetizing its 33% stake in Jio platforms and is poised to capitalize on the next big digital story. With the company moving towards zero debt, it is in a position to even justify its relatively rich P/E valuation by historical standards.

Just as Reliance crossed the Rs.2000 mark, gold also hit a new high of Rs.51,500 per 10 grams. The global price of gold is yet to reclaim the peaks of September 2011 but the spurt in Indian gold is more due to the post COVID uncertainty and the fear over monetary debasement by central banks. However, the gold/silver ratio hints at a pause in gold prices.

How do you make your call. Clearly, if you are looking at short term momentum, gold could have an edge over the Reliance stocks as gold does not have to worry about valuations. But if your look at a longer term, it is the RIL stock that has been a star performer and gold is already becoming unaffordable in India. The long term bet would be on RIL stock.