Gold has historically been a great investment for those looking to diversify their portfolio and make long-term returns. Over the past 10 years, the average annual return of gold investments is around 10.61%.
However, the long-term returns of gold investments can vary significantly depending on the time period and economic conditions. For example, over a 15 year period from 2005 to 2020, the price of gold increased by 330%, while the annualized return of 10-year Treasury notes was 4.6%.
Gold has also seen significant spikes in recent years due to global economic and geopolitical uncertainty, such as the all-time high of nearly $2,075 in 2020 and the spike above $2,000 per ounce in 2021 during the Russia-Ukraine conflict.
1 kg of gold is currently valued at around €56.000 (August '22). its size, however, is fairly small and not much bigger than a mobile phone. gold has a very high density which makes it compact of size..
How well was the performance of the gold rate (in euro’s and dollars)? With which percentage did the gold rate increase or decrease on an annual basis?
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Gold Price Performance Table: Annual Change
Source: World Gold Council
Note: calculation based on end of year gold prices
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Gold is a popular asset among investors due to its potential for high yields and long-term stability. Gold investments can be made in a variety of forms. While there is no guaranteed yield or interest on gold investments, the price of gold has historically increased over time, providing investors with a potential for returns. Understanding the risks associated with investing in gold is key to maximizing your returns. By researching the current gold market and understanding the potential risks and rewards, you can make informed decisions about investing in gold and create a secure portfolio for your financial goals.
At GoldRepublic we follow the worldwide spot price. This implies that we don’t have our own pricing mechanism, which is a good thing. When you buy gold from GoldRepublic you pay the spot price + spread + 1% transaction fees. If you decide to sell your gold, you have a buy-back guarantee as long as you have stored your gold with us in one of the three storage locations throughout Europe. When you sell your gold, you will be paid the spot price minus the spread and 1% in transaction fees. This is a transparent fee that is clear to all customers.
The price of gold can sometimes be volatile. This volatility is not merely an expression of demand and supply. It can also be an indicator of the movement in the currency in which gold is priced. GoldRepublic’s gold price are always in line with the worldwide spot price.
- Demand and supply will affect the price of gold. Historically there has been more demand for the gold then then the available above ground supply.
- Fluctuations between the dollar and euro can have an impact on the value of your gold. The gold price is valuated in dollars. If you buy gold you are automatically also taking a position in dollars. Therefore, if the dollar gains in strength over the euro then this is positive for you as a gold owner living in a euro country.
- Gold is seen as the ultimate safe haven. Many people also view the US dollar as a form of security. Having said that, when there is strife in the world then gold is seen as the ultimate safe haven.
Also read our page: why invest in gold?
Looked at historically and compared to other investment categories, gold prices show moderate volatility. Extreme peaks are levelled off by longer periods of relatively little movement.
Given how much gold is hyped as being extremely volatile, the graph below shows a different picture. It is in fact oil that is far more volatile, a commodity that we use on a daily basis.
The volatility of the gold price in relation to other investments (source: world gold council)
When on the GoldRepublic site, you will see that there is a difference between the buy and sell price. This is known as the spread. The spread is more or less what GoldRepublic pays the refiners in order to acquire the precious metal.
When you purchase from GoldRepublic you pay a spread and then also the transaction fee of 1%.
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