Why your Rs 7 lakh car is worth scrap while gold turned into Rs 25 lakh

Every middle-class family has its wealth story. For some, it’s the pride of buying a new car; for others, it’s the quiet decision to tuck away some money in gold. Both feel “valuable” in the moment, but over time, the difference becomes striking.

Take a flashback to 2012. A father proudly drives home a brand-new car worth ₹7 lakh. Meanwhile, the mother quietly buys gold worth the same amount. At the time, both purchases seemed meaningful — one brought instant joy, the other looked like an outdated habit. Fast-forward to 2025, and the contrast is jaw-dropping.

The car, once shiny and new, is now worth barely Rs 1.2–1.5 lakh.

The gold, on the other hand, has appreciated to Rs 23–25 lakh.

That’s the quiet power of appreciation versus the certainty of depreciation.

Let’s break it down with simple math:

Car: Rs 7 lakh in 2012 → ~Rs 1.5 lakh today = 80% depreciation

Gold: Rs 7 lakh in 2012 → ~Rs 24 lakh today = 240% appreciation

The numbers tell the story. Cars, while emotionally fulfilling, are liabilities. They start losing value the moment you drive them out of the showroom. Gold, on the other hand, is a silent wealth builder — no engine, no fuel, no repairs, just patient compounding over time.

Lessons from real stories

RPG Enterprises’ Chairman Harsh Goenka once shared a personal anecdote on social media. A decade ago, he bought a car worth Rs 8 lakh, while his wife bought gold for the same amount. Today, that car is worth about Rs 1.5 lakh. His wife’s gold? Nearly Rs 32 lakh.

When Goenka suggested a vacation instead of buying gold, his wife replied, “A vacation lasts 5 days. Gold lasts 5 generations.” He humorously concluded, “Moral: Wives are smarter.”

In another instance, he compared his Rs 1 lakh phone purchase with his wife’s gold buy. The phone’s value fell to Rs 8,000, while the gold grew to Rs 2 lakh. Again, the verdict was clear — gold doesn’t just sit pretty, it grows.

Gold as hedge

Why does this happen? The answer lies in how different assets behave. Depreciating assets like cars, gadgets, or vacations lose value with time. Appreciating assets like gold, stocks, or real estate build value as years pass. Gold, in particular, serves as an inflation hedge. While currencies weaken and costs rise, gold tends to hold — and even increase — its purchasing power.

As of mid-August 2025, gold prices in India stand at record highs. A 24-karat bar costs about Rs 1,01,240 per 10 grams, with 22-karat at Rs 92,800. Even global spot prices are trading at over $3,300 an ounce. Despite short-term volatility, the long-term story is consistent: gold protects and multiplies wealth.

Gold has delivered over 20% returns in 2024, reinforcing its role as a reliable hedge against inflation and market uncertainty, while offering high liquidity and convenient access via digital platforms.

Real takeaway

Investing isn’t about chasing glamour — it’s about choosing assets that stand the test of time. Cars, phones, and vacations bring joy, but they don’t bring returns. Gold, though boring to some, is a quiet warrior in the world of wealth creation.

So, who was the better investor back in 2012? The dad with the car or the mom with the gold?

The answer is simple: Mom. Always Mom.

Sometimes, the smartest investments aren’t flashy. They’re golden.