The Ring on my Finger is golden and he is dear to me. My dentist has recommended to me, my Golden tooth filling, to repeal, after they had fallen out. Is, after all, what value. However, a proper money system is not of course both. Even if the price of gold these days, rises again, in the appropriate View, again, crisis scenarios are evoked, and the so-called Prepper fill your basement in front of the Brexit and the European elections, with the canned goods.
Gold is, and remains, not a really good investment. My fellow “Finanztip” last year, calculated that Gold historically has only brought half as much return as stocks. The gold has fluctuated in price by even more than the of stock, so he was even more volatile, as it is called in the jargon.
Reading the can also be used in the two most important observations to investment in Gold in the last 50 years:
The first story begins in the middle of the Iran crisis of 1979 and 1980 . The world is restless, the price of Oil has increased dramatically, the Inflation also, particularly in the United States. Finally, the Iranian revolution, take garden of the Embassy staff, the U.S. mission in Tehran as hostages. The price of gold climbs and climbs from 500 dollars per fine ounce at the beginning of the year, 1979 to $ 850 in early 1980.
And then the bubble bursts. After the stock market operator and state actors make this more difficult side of the Atlantic are Speculating with non-existing Gold and silver rushes of the course to the bottom.
Details are to be found in the standard work “Gold” by Rae Weston. 21. January 1980, continued for example, the Federal government limits for reserves, the banks in Gold were allowed to keep. The then head of the U.S. Central Bank, Paul Volcker, later explained: “the Gold and the speculators, that were my opponents.”
Who had bought an ounce in 1980, to the high prices, had to wait until January 2008 (i.e. up to the beginning of the great financial crisis) to achieve a nominal price from 1980.
about The author Finanztip Hermann-Josef Tenhagen (Born 1963) is editor-in-chief of the “Finanztip”. The consumer guide is a non-profit. “Finanztip” refinanced through what is called Affiliate Links. More on this here.
Tenhagen has previously led as editor-in-chief for 15 years, the magazine “financial test”. After his studies of politics and Economics, he began his journalistic career at the “daily newspaper”. He is now the honorary Supervisory Board of the cooperative. In the case of MIRROR ONLINE Tenhagen writes weekly about the right way to deal with your own money.
Subsequently, the price rose actually again – up in 2011, the peak of the Euro crisis . Again political and economic turmoil were the starting point. The global financial crisis and then the Euro crisis and the particularly difficult situation in Greece. And again, the state intervened and hampered the trade with gold papers. The collateral had to put speculators on the table, to buy so-called Gold Futures rose in August and September 2011, within one month smooth by half. The Speculate was much more expensive. And the prices plummeted. The Declaration of the heads of the European Central Bank, Mario Draghi, did, months later, the Rest of the. Draghi said in 2012, you will do whatever is necessary to preserve the Euro – and thus the speculator the Wind out of the sails.
Who has bought in 2011 for up to 1900 dollars per ounce of Gold that is waiting since then to a rate of return. Still, the price is around a third below the peak prices of 2011 and he has moved in the past two years, a little bit up and a bit down, but rather sideways.
Only those who has bought in the beginning of this Millennium, Gold, for the Gold is still a good Investment in the long term, worse than stock, but still.
return and volatility of MSCI World vs. Gold
MSCI World¹ gold 2 period return Schwankung3 yield fluctuation 1980 – 1990 18,8% 15,4% -1,2% 21,8% 1990 – 2000 12,6% 16% -2,6% 12,3% 2000 – 2017 1,8% 14,9% 7,7% 12,7% 1975 – 2017 8,4% 15,1% 3,8% 15,9%
¹Die performance was calculated on the MSCI World net index, the offset, the dividends, after deduction of taxes and costs, and the index values were converted into Euro.
2The price of gold was converted into the Euro.
3Schwankung referred to the average standard deviation of monthly returns (annualized).
From the height of the Internet stock market hype in the year 2000, the Bursting of the Dotcom bubble in 2001 and the financial crisis of 2007-2009, shareholders who had placed their money on the world stock index MSCI World had, until 2017, only a return of 1.7 per cent in the year, when Gold it were smooth and 7.7 percent. Over the whole period from 1975 to 2017, the annual rate of return on Gold, in contrast, was 3.8 percent and the MSCI Stock portfolio is twice as high, at 8.4 per cent in the year.
And now you say: I’d rather have bars than stock. I just feel safer with it and I don’t care about the warnings against price fluctuations, speculators and government intervention. What then?
My response: Then make it at least a craft correctly.
Gold has been good in the past at least, to lose in the months of tough financial crises less money. You create a part of their free assets in Gold, you can mitigate the fluctuations of the total net assets , at the expense of the long-term rate of return. For the control, the following rule applies: After a one-year holding period, you will not have to pay tax on any winnings. You buy, if it’s supposed to be physical Gold, the best bars and well-known coins . Especially in the case of the coins, you should prefer to take larger coins, the small, the purchase costs are quite high. More than ten percent for a tenth-ounce, it’s common to a whole ounce of just 3.5 percent. Use Online platforms, in order to good and reputable precious metal or coin dealer to find out. The price differences can be significant. To create a small Safe or a locker . One kilo Gold bars is barely larger than a phone, but more than 30,000 euros. Update your household insurance . Good household contents insurance to insure bullion and coins even in the Safe of the Bank. If you want to sell Gold , is the well-known coins and bars easier. Jewelry, gold, or unknown coins you should let the professional to appreciate and not easy to sell online. Gold is of use only in very limited as a currency in times of Crisis. For a couple of months of unrest in the financial markets, it is okay. But then? Gold you can take, but not to eat. On the go, you need to keep your valuable possession safe and are so reliant on well-functioning state structures. The allotment garden with potatoes, strawberries and Apples remains in the great crisis, therefore, is usually the better answer.
What follows from this: As the last sentence of the first sentence, my colleague, writes in her standard guide to the topic of Gold: “Gold is very likely to be never worthless: Who’s afraid of a currency crash, you can think about buying Gold.” Think. .