Gold t- Beating Equity

My friend had invested in DSP Merryll Lynch's Gold Fund about three months back. About the same time when I had invested in a diversified Equity fund( with over 70 % allocation in Equity and equity oriented schemes and rest in debt schemes) I have noticed that even when the sensex tanked below 13000, his investments are going up. In this market, when Sensex is crashing day by day -Is it wise to invest in Gold Funds instead of Equity ( Diversified or Sectoral) Ones? If this is the case then which Gold Fund o invest in? Is the Reliance one better than the DSP one? Secondly, in the longer run, when the market recovers, Will Equity schemes out run the Gold Funds ?Pls advise