Long-term positive return gold

Due to economic turmoil, such as the corona crisis a few years ago, there is a renewed focus on investing in gold as a safe haven. In times of crisis, many investors see gold as an investment that holds its value. As a result of growing demand and subsequent scarcity, gold prices have risen, confirming gold's role as a safe haven. We also notice this at The Silver Mountain. Gold is also popular with our customers.
However, it is a misconception that gold is a good investment only in times of crisis; even in the long term, gold has proven to be a somewhat stable and profitable investment.

Long-term historical returns of gold

Analysts worldwide have compared gold's performance with other investments over the past decades. Their analyses show that gold offers reliable returns. Jordan Eliseo, senior investment manager at Australian gold dealer The Perth Mint, shows that gold has delivered an average annual return of 8% over the past 20 years. 
The Australian market shows that over the past five years, gold achieved a return of 8.32%. Over a three-year period, the return rose to 10.63%, and the last year even recorded a return of 18.86%. Compared to other investment products such as government bonds and currencies, gold performed significantly better.
Over a longer period of 15 years, gold is shown to have achieved an average annual return of 9.5%. Other investments, such as stocks, bonds or real estate, could not beat this return, showing that gold remains an attractive option for investors seeking solid long-term returns.

Gold yields in different markets worldwide

Not only in Australia, but also in other markets worldwide, gold has proved its worth. In the Indian market, the price of gold has risen 116% over the past decade. In the past year alone, gold prices in India rose 35%, and this year has already seen an 18% increase so far. 
Gold price growth in India is partly driven by increasing demand for gold as an investment and as a store of value in times of economic uncertainty. Many analysts expect the ongoing economic turmoil to further strengthen the gold price in the near future. 
 

Why gold is a solid long-term investment too

Gold remains a solid long-term investment, due to its stability and stable value. Unlike other forms of investment, which is subject to inflation, gold in many cases retains its intrinsic value regardless of monetary fluctuations.
In addition, gold provides a diverse content to an investment portfolio, as it can play a protective role against currency risks and stock market declines, among other things. Many experts consider gold an important component for a stable portfolio, especially during periods of economic uncertainty.

The impact of global economic turmoil on gold prices

Global economic turmoil has a direct impact on the demand for gold and thus on the price of gold. Even in times of geopolitical tensions, such as trade wars or inflation, investors often turn to gold because of the stability it offers. 
Thus, gold protects against inflation and loss of purchasing power as it is not dependent on a centrally controlled currency in most cases. As a result, gold acts as a reliable investment in times of global crises and economic fluctuations.
Are you also interested in investing in gold? Check out our current range of gold coins and gold bars. Are you interested in investing or do you have other questions? Please contact us. 
 
Disclaimer: The Silver Mountain does not provide investment advice. This article is for information purposes only. Past results are no guarantee for the future.