2012 marked the twelfth year in a row that the price of gold increased between January 1 and December 31, including the economic recession years of the late 2000s. This bodes well for past and future gold collectors and investors alike. People who purchased gold 10 or more years ago and held onto it have enjoyed a value increase year after year, while people considering purchasing gold in the near future can take confidence in an investment that has consistently performed favorably (past performance does not guarantee future results).
In 2011, gold saw a 9.18% price increase from January 1 through December 31, despite decline periods in both September and November of that year. Experts wondered whether 2012 could continue this annual growth trend.
In early 2012, gold was priced at $1,566 an ounce following 2011’s 9% increase. By the end of December, the price of gold had grown to about $1,664 an ounce, or more than an 6.26% gain throughout the year. If we average the gains over the twelve year period we get an average annual gain of 16.6%. Once again, gold value and cost increased, despite unpredictable or unstable financial trends and economies across the world.
Given that 2012—and the 11 years before it—all experienced positive growth for the price of gold, people wonder how 2013 will shape out. Will the price of gold increase annually, making 2013 the twelfth year in a row to continue that trend? No one can say for sure, but most investment experts agree that gold will continue to be a less risky investment than many other investment options and will continue on its upward trajectory. Also, it is important to look at gold as a long term investment. While it may gain value by the end of the year, it will become much more valuable over time with inflation: 10, 20, or 30 plus years from now.
A variety of factors affect the price of gold, and whether it will grow or decline during a given year or decade. Many of these are the same factors that affect the growth potential of any other type of investment. A past article takes look at these factors in more detail, read it so you are fully aware and educated about your decision to invest in gold, as well as knowledgeable about the drivers of your investment’s value opportunity.