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Should investors look to gold now?

Storing physical gold can also be a challenge. For example, in addition to needing a place to store their gold bars, investors in physical gold must ensure that they are protected from the added risk of loss or theft. This includes getting insurance that covers the risk of their gold holdings being stolen or lost in some way.

If investors are worried about investing responsibly, they may also hesitate to invest in gold. Like other industries that extract resources from the earth, the activities of gold mining companies have historically had a significant impact on the environment and their surrounding communities, and high-profile disasters at some sites have drawn attention to health and safety risks. Is. employees of these companies. But some mining companies also show social responsibility because they provide employment opportunities, contribute to infrastructure improvements, and contribute to health and education in the communities they touch.

historical display of gold

According to Macrotrends.net, as of March 2, 2022, the price of gold was USD 1,922.30 per ounce. Adjusted for inflation, the same ounce of gold would be worth approximately $2045 at the end of 2021 and US$1,750 in March 2020, when the COVID-19 pandemic began. In March 2012, the inflation-adjusted price of gold was approximately $2040.

Twenty years ago in March 2002, gold was about $460 an ounce; In January 1990 it was priced at around $900 an ounce. Gold was at its peak in January 1980, when it was priced at around $2,450 an ounce. Ten years before that, in 1970, it was at its lowest level at about $250 an ounce.

Make gold a part of your portfolio

Rather than investing directly in physical gold, the average investor will likely want to diversify into gold by investing in gold exchange-traded funds or mutual funds. When it comes to these vehicles, it’s important to look under the hood; Gold funds can get their exposure to the haven metal by investing directly in physical gold (so-called bullion funds), but some invest in gold mining companies (gold miners or resource stocks), while other gold-backed funds invest in complex financial instruments. trust. Betting on the price of gold instead of investing in gold.

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