Gold 5 year charts of performance and historical outlook

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 / 5 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.)

5 year price chart of gold*

5 year price chart of 1 oz gold

The unit of gold 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)

You can find other gold charts from intraday up to 3 year here.

Gold’s long term yield chart*

People often say that long term investments carry less risk than short term ones.

As you can see, there was a time when gold has yielded nice returns if one invested in it for 5 years. However long term return has started to decrease recently (first appearing in the 3 year curve), just like gold’s price:

Annualized 3 and 5 years return of gold price in the past 5 years

What can you see on this 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 5 years. It helps you to highlight how stable profits were.

Similar charts of the past 10 year can be found here.

Historical peaks of gold price & long term outlook

Financial crysis has also boosted gold’s price in the past 5 years. But is cca. 1800$ too much for 1 oz of gold in 2010’s? Was gold worth more in the past?

Past nominal gold price is hard to compare to current price because 1 USD had different value back in 1980 due to the inflation. So chart below** shows 2 curves:

  • nominal gold price
  • gold price adjusted by consumer price index

As you can see, current peak is far from gold’s peak value on Silver Thursday in 1980. On the other hand this does not mean that gold price will have to go higher – past behaviour does not represent any guarantee for future performance.

 Gold's nominal price chart and the price chart adjusted with CPI / inflation

*charts 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.

**source of chart is http://en.wikipedia.org/wiki/File:Gold_price_in_USD.png

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