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Gold vs FD — a physical hedge or a guaranteed rate?

Gold has no guaranteed return but acts as an inflation and crisis hedge; FD is fully guaranteed but its real (inflation-adjusted) return can be thin. Compare both on the same amount and horizon.

Run it on your own numbers

Gold Calculator vs FD Calculator10-year comparison

Opens Compare Lab pre-loaded with both, in your own currency — adjust any input and the chart updates instantly.

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How each one actually works
Gold

Physical or digital gold, valued by weight at the prevailing market price, plus making charges and GST on physical purchases.

PROS
Globally liquid — can be sold almost anywhere, quickly
Tends to hold or gain value during market stress, a useful hedge
No counterparty risk on physical gold
CONS
No income or yield — return comes purely from price appreciation
Making charges and GST reduce the effective return on physical gold
Storage and security are a real practical concern

Best for: A smaller diversifying allocation (typically 5–15% of a portfolio) as an inflation and crisis hedge, not a primary growth holding.

Fixed Deposit (FD)

A lump sum deposited with a bank for a fixed tenure at a fixed, guaranteed interest rate.

PROS
Fully guaranteed return — no market risk
Predictable maturity value known upfront
Widely available and simple to open
CONS
Interest is fully taxable at your slab rate every year it accrues
Return is capped — no upside beyond the fixed rate
Early withdrawal usually triggers a penalty

Best for: Capital you can't afford to risk — an emergency fund, or a short-term goal within a couple of years.

Questions
Does gold beat FD after inflation?

Historically gold has often outpaced inflation over long periods better than FD does after tax, but this varies significantly by period — run both at your own assumed rates rather than relying on a rule of thumb.

Where do these numbers actually come from?

The same calculation engine that powers our standalone calculators and Compare Lab — nothing here is a separate or simplified estimate. Every assumption (rate, tenure, tax) is visible and adjustable once you open the comparison with your own numbers.

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All figures are illustrative projections based on the assumptions you select, not guaranteed returns. Validate tax and scheme rules before making financial decisions.