Gold is often referred as a “safe haven” during an economical / financial crysis. Well, these opinions have proven more or less wrong according to long term / 10 year charts because gold’s price has shown quite high volatility. On the other hand gold’s price did not change as extremely as silver’s price.
(Differences between gold and silver are highlighted in the 5 year gold-silver comparison charts.)
The 10 year chart of gold summarizes the chages in the price well, however, we recommend to have a look at the chart(s) below, too.
The unit of gold above is 1 oz / 1 troy ounce = 31.10348 g (Troy ounce = 1/12 troy pound. Its a measure of precious metals.). (Prices are in US dollars)
People often say that long term investments carry less risk than short term ones.
Well, on the chart below you can see if that is true for yourself in the case of gold for the past 10 years.
What can you see on the chart?
You can calculate gold’s 1 month return from gold’s price today and gold’s price 30 days ago. You can also do the same calculation for yesterday and gold’s price 31 days ago etc. If you do this calculation for each days, you will get a curve of gold’s 1 month yield. The same applies to other yield periods from three months to five ears.
This chart shows each yield curve in the past 10 years. It helps you to highlight how stable profits were.
Treshold marked with red shows 0% return.
Changes of price in case of gold does not carry too much meaning unless we compare it to something else like Customer Price Index (CPI), or an other commodity.
So this chart shows gold’s relative change against the US customer price index in the past 10 years.
*charts are updated monthly, and they have been created by using Chartoasis Sesame. If you feel like analyzing gold’s historical prices, you can do that for free at www.chartoasis.com/sesame . You can download gold’s historical data using this step-by-step guide.