Is gold worth the investment?
This common question of whether gold is worth the investment brings us to analyze the history of gold investments and whether or not it has been worth it in the past, and whether or not the same trends will continue into the future. I like to look at some of the longer term charts to see the history of gold prices to prove the point that gold has really always been worth a healthy sum in the context of currency worth, and has only continued to be valued at an equal or higher rate over the recent future. Here’s just a snap shot of the five and twenty year charts:
20 Year Chart
5 Year Chart
If you look at these charts of the history of gold’s price over the last 5 and 20 years, it’s obvious that the price of gold has continued to grow over the years at a pretty alarming rate. However, one might state that this is only because the inflation rate has followed this same trend. This is very accurate and in fact if you look at this cumulative inflation chart below you’ll see a similar trending chart:
Looking at these charts brings the prices of gold into perspective. While we may be astonished by the rising prices of gold, we really have to look at the inflation rate and the devaluation of our paper currencies. Keeping this in mind you may come to the conclusion that indeed gold is a safe and solid hedge against inflation and that buying it in the future will protect against further devaluation of paper money. It will always have intrinsic value and will protect your money from inflation.