Gold Investment Calculator: Check Profit or Loss

Investing in gold is an effective way to diversify your retirement portfolio. A recent study found that investors who invested $10,000 into gold had a return of 10% per annum over 30 years. This is far better than most investment options, including stocks and bonds. However, it is important to understand how much you are potentially losing out on by investing in gold. You must also consider whether buying physical gold is the best option for you.

The price of gold fluctuates daily, so we have developed a calculator to help you calculate the value of different investments in gold. Enter the amount you want to invest, select the type of investment (e.g., bullion bars), and see what the current market value of your investment is today.

Calculate Historical Gold Price

Gold prices have been increasing steadily ever since 1980 and it is now worth over $1,300 per ounce. In fact, gold has risen nearly 400% since 2000. This chart illustrates how gold prices have increased throughout history. You can see that there have been periods where gold prices dropped dramatically, but overall, the price has been steadily climbing.

The price of gold is determined by supply and demand. When the economy is doing well, people tend to spend less money and save more. They want to keep their wealth safe and secure. As a result, investors look to precious metals like gold because they know that it won't lose value.

Gold is considered a "safe haven" investment. If investors feel uncertain about the future, they'll often turn to gold. People buy gold to hedge against economic uncertainty.

There are many different ways to invest in gold such as buying physical gold bullion, investing in gold coins or bars, trading gold futures contracts, or purchasing exchange traded fund (ETF).

The Gold Return Calculator's methodology

The Gold Price Calculator is designed to help investors determine whether investing in physical gold makes sense for them. Using historical data, it calculates what percentage return you can expect on your investment dollars. We use the average price of gold during the period 1981–2018 ($955/oz), which represents the best long-term performance. However, there are many factors that influence the value of gold, including the strength of the US dollar, political events, and global economic conditions. For example, the price of gold rose dramatically during the 1980s because of fears of hyperinflation and high interest rates. In contrast, the price of gold fell during the early 2000s due to concerns about the economy and the stock market.

To make sure our calculations are accurate, we take several steps to ensure that the numbers reflect real world conditions. First, we use actual prices rather than estimates, such as futures contracts. Second, we include inflation adjustments based on the Consumer Price Index. Third, we adjust for the fact that some people prefer to hold bullion bars, coins, and other forms of physical gold. Fourth, we exclude certain types of investments, like mining stocks and precious metals funds. Finally, we provide a disclaimer explaining why we believe the calculation is useful.

Implications on Gold Investing

Gold prices are up about 30% since April 2017, but it’s still cheaper to invest in gold than it was four years ago. If you want to know why, read on…

The following graph compares the current cost per ounce of gold to what it costs to purchase one ounce of gold in 2013. As you can see, there’s been a significant increase in the price of gold since 2013. However, the average person doesn’t realize just how high the price of gold really is because the dollar isn’t keeping pace with inflation.

In fact, the U.S. government reported that consumer prices rose 2.9% in December 2018 compared to the same month a year earlier. When you add in the 3.4% rise in energy prices, the overall inflation rate climbed to 4.3%.

If you compare the current cost of gold to the cost of purchasing one ounce of gold in January 2013, you’ll notice that the price of gold is actually lower now than it was four years prior.

This is due to the Federal Reserve raising interest rates in mid-2013. At the time, the Fed raised short term interest rates for the first time in nearly five years. This caused investors to sell off their assets in anticipation of rising interest rates.

As a result, the value of the U.S. Dollar dropped against foreign currencies like the Euro and British Pound. Because the dollar lost value, the price of commodities like oil and gold increased.

However, in recent months, the Fed has begun to reverse course. They lowered interest rates twice in 2018, and they plan to do so again in 2019. Investors are buying gold once again because they believe that the Fed won’t raise interest rates anytime soon.

The Gold Return Calculator's restrictions

The gold return calculator is a useful tool for calculating how much money you could make investing in precious metals. However, there are some limitations to it. For example, the calculator doesn't take into account leap years, nor does it consider the cost of storage. You might want to use another calculator to see what your actual returns would be.

Frequently Asked Questions

Why investors like gold

The World Gold Council recently published a report about why investors like gold. As part of the study, the council interviewed some of the world's leading experts on precious metals. Here are three reasons why investors choose gold:

1. Return On Investment

According to the WGC, "gold has historically outperformed both equities and fixed income." Over long periods of time, it has been one of the best investments around. Even during the 2008 financial crisis, gold still performed well.

2. Liquidity

Investors don't have to worry about converting their investment into cash. They can sell their asset whenever they want. This makes investing in gold easier for many people.

3. Diversification

Gold tends to perform differently from other types of investments. When stocks fall, gold usually goes up. And when stocks rise, gold typically declines. This gives investors a hedge against risk.

Should You Invest in Gold?

Gold prices are up almost 30% since the start of 2018. This rise has been attributed largely to geopolitical tensions around the world, including in North Korea and Iran. However, there are some investors who believe that the price of gold could continue to climb even further. One reason why gold might perform better than many other asset classes in the future is because it offers investors a hedge against inflation. Inflation erodes purchasing power, which makes it harder for people to buy things like food and housing. As a result, inflation often leads to economic hardship.

However, while inflation hurts the economy, it doesn't hurt the dollar. When inflation occurs, the government usually increases interest rates to try to slow down spending. Higher interest rates mean that people tend to borrow less money, which helps to keep the currency strong. Because the United States uses the U.S. dollar as its currency, rising inflation actually benefits American consumers.

If you're worried about inflation and want to protect yourself from it, gold may provide you with a good investment option. Unlike other assets such as bonds, real estate and equities, gold is considered a "safe haven." Investors who hold gold do so because they think the value of the metal will increase over time. While gold does fluctuate in price, it tends to move much slower than other financial markets. Over the long term, gold has proven itself to be one of the best investments out there.