Investing in Gold: Good or Bad Choice? 20-Year History

Martin Kral , Anna Olszańska

Abstract

In times of prosperity and economic growth, many people can save part of their income. At the same time, people are increasingly considering where to put their savings. Perhaps the most important factor in this is appreciation rate - while in bank accounts these interest rates do not exceed the level of inflation, alternative forms of investment may offer higher appreciation rates. The aim of this paper is to assess the benefits of investing in physical gold in the period from 2000 to 2019. It turns out that although investing in gold is referred to as long-term, and hedging rather than investment, the opposite is true. In the last twenty years, there have been only a small number of cases where an investor would not profit by buying in gold. In the vast majority of cases, it would reach an average annual appreciation of around 9% p.a., except for only a few years, when the gold price reached its maximum values. Generally, it can be stated that if an investor does not have enough information and does not want to entrust his / her savings to investing with the bank, purchasing physical gold will not make a mistake with a few exceptions. This exception is mostly easy to recognize - everyone will know that the price of gold reaches new maximum values.
Author Martin Kral - University of Hradec Kralove
Martin Kral,,
-
, Anna Olszańska (E&F / DMaFE)
Anna Olszańska,,
- Department of Economics and Organization of Agri-Food Economy
Pages382-389
Publication size in sheets0.5
Book Jedlicka Pavel, Maresova Petra, Firlej Krzysztof, Soukal Ivan (eds.): Proceedings of the International Scientific Conference Hradec Economic Days 2020, vol. 10, no. 1, 2020, University of Hradec Kralove, ISBN 9788074357763, 917 p., DOI:10.36689/uhk/hed/2020-01-000
Jedlicka_P_Maresova_P_Firlej_K_Soukal_I_Hradec_Economic_Days.pdf / 42,09 MB / No licence information
Keywords in Englishgold; investment; stock market; investor
DOIDOI:10.36689/uhk/hed/2020-01-044
Languageen angielski
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Kral_M_Olszanska_A_Investing_in_Gold.pdf 662,99 KB
Score (nominal)5
Score sourcepublisherList
Citation count*
Additional fields
UwagaThis paper is supported by specific project No. 2103 "Investment evaluation within concept Industry 4.0" at Faculty of Informatics and Management, University of Hradec Kralove, Czech Republic.
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