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Government Bonds vs Gold — fixed income or a physical hedge?

Government bonds pay a predictable coupon; gold has no yield but tends to hold value differently during market stress. Compare both on the same amount.

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Government Bonds vs Gold Calculator — 10-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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Government Bonds
Gold Calculator
How each one actually works
Government Bonds

Debt issued by the government, paying a fixed coupon over a set tenure, backed by sovereign credit.

PROS
✓Among the lowest-risk investments available — sovereign backing
✓Predictable, fixed coupon income
✓Tenure options span from a few years to several decades
CONS
✕Coupon interest is typically taxable at your slab rate
✕Real (inflation-adjusted) return can be thin
✕Selling before maturity depends on prevailing rates and market liquidity

Best for: The safest portion of a fixed-income allocation, especially for capital you want protected above all else.

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.

Questions
Do government bonds protect against inflation the way gold does?

Not as well historically — a fixed coupon bond's real return erodes as inflation rises, while gold has more often (though not always) kept pace with or outpaced inflation over long periods.

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.

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