When you are thinking of buying gold, you can anticipate physical gold bars arranged in a safe, just begging for attachment. Whether you are looking to buy or sell a gold product, it can be a very lucrative long -term investment.
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Like most market -based investments, the price of golds in all directions. So, how did you perform in the last ten years? If you invested $ 1,000 gold decade ago, how much would it cost today? Let’s understand.
Ten years ago, the price of gold had an average closing price of $ 1.158.86 an ounce. Today it costs about $ 2,744.67 an ounce. This reported a 136% increase in value or an average annual return of 13.6% (not calculated for interest composition).
According to this assessment, if you invested $ 1,000 in gold decade ago, it will today cost approximately $ 2360. This is a solid return. However, how is it compared to, say, investment in shares?
The S&P 500 has increased 174.05% in the last ten years, for an average annual return of 17.41%. And this does not even include his dividend yield during this time. Also, think that it is as variable as the S&P 500 is that the 5 Gold cities you have to consider if you retire in 2025 are even more in modern history.
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When Richard Nixon separated the dollar from the golden back in 1971, the price of gold suddenly began to sail at market prices. Therefore, he jumped for the rest of the 70s, providing an average annual return of 40.2%. Then the 80s arrived in the last century and Gold Party stopped. From 1980 to the end of 2023, gold marked an average annual return of only 4.4%. Gold has lost value in most years in the 1990s, for example.
Gold does not work as other investments. Traditional investments such as shares and real estate work because they generate revenue. Investors measure these revenue, evaluate the likelihood of future revenue growth, and give the investment value based on it.
Gold does not produce revenue. In fact, this does not “do” nothing. He sits there and looks pretty. This may not mean much when the rest of the economy buzzes healthy, but it can become very meaningful when a wrench is thrown into the gears.
Many investors consider different amounts of gold the best investment in safe asylum. When “the world goes to hell in a hand basket”, investors can buy gold in the form of gold coins, gold ETFs and others on the gold market.