Tuesday, September 2, 2008


No one knows exactly how gold will be priced in the future, but this blog made some interesting points.  In 1800, the price of gold was just below $20 per troy ounce.  By 2008, gold has reached almost $1,000 per ounce, just not quite yet.

In total, this is less than a 2% annualized average rate of return.  The all time peak for gold was in 1980 – the price equivalent, when adjusted for inflation – is $2,000 per ounce in today’s dollars.  $2,000 an ounce is a far cry from the $800 an ounce where gold is priced right now.

Take note that gold hovered around $20 an ounce for about 130 years, with the past 78 years showing safe, but not the highest rates that are paid out with other investments.

Historically, gold is always suggested as a hedge against inflation, due to the fact that it does well when people lose confidence in hard currency.

With decline of dollar and the possible decline of the euro, gold again may be that hedge against inflation.  To learn more about the prices we pay for gold, visit www.cash4gold.com and consider selling your gold today.



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