Gold has remained in the public consciousness consistently in the last several thousand years and, though it lost its role as money in recent decades, it maintains an important place as the commodity of choice for investors wishing to safeguard their wealth against inflation and volatility of the stock market.
Indeed, prominent investors such as the author of the best-selling personal finance book “Rich Dad Poor Dad,” Robert Kiyosaki, has for years been recommending gold as one of his top three investments – along with silver and the world’s premier cryptocurrency, Bitcoin (BTC) – especially now as he believes the world is in the leadup to the “biggest crash in history.”
Still, despite playing the role of the stable vault for wealth, gold has itself seen significant fluctuation in price and has recently hit its highest-ever value of more than $2,200.
Picks for you
Given its prominence and its recent performance, Finbold decided to take a look at how much an investment made in gold in 1999 – a year notable for the commodity having an uncharacteristically low price – would be worth in March 2024.
How much would a $1,000 investment in gold in 1999 be worth now?
On average, the price of gold in 1999 stood between $278 and $290 per ounce but the year also boasted one of the lowest points for the world’s leading commodity at $252.80.
1999 was generally notable both for featuring an uncharacteristically low average price of gold and for being recognized as the last in a protracted bear market for the precious metal that started in 1980.
If we assume the $1,000 investment in 1999 at the year’s low – which the commodity hit in July – it would have grown 770.25% to $8,702.53.
For comparison, a similar investment of the same size made near the same time in a highly successful stock such as the semiconductor giant Nvidia (NASDAQ: NVDA) would have grown 111,470.37% to $1.1 million.
If anything, the comparison showcases both the fact that – given its stability as a store of value – gold can hold its own as an investment but is more than outclassed by other assets for traders primarily seeking growth.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
