Gold surprises the financial world with a historic rally. The gold price has more than doubled since the beginning of 2024 and even broke the barrier of USD 5,000 per ounce. Anyone who had invested 100 euros every month would now see a return that is normally only expected with crypto.
What would that have achieved in concrete terms?
Dutch and Belgians can easily invest in precious metals at the crypto exchange Bitpanda. You can buy crypto, precious metals, shares and ETFs on one platform. New users temporarily receive 15 euros of free silver when opening an account.
Gold prices are rising explosively
At the beginning of 2024, gold was around $2,045 per ounce. It is now approximately $5,050. That is an increase of approximately 147 percent.
Anyone who had invested 100 euros in gold every month since January 2024 would have invested a total of approximately 2,500 euros. Due to the enormous increase, that amount would now have grown to approximately 6,175 euros.
That means a profit of approximately 3,675 euros.
For an asset known for being ‘boring’ and defensive, that is exceptional. These types of returns are normally associated with altcoins rather than a precious metal that has been around for thousands of years.
Why gold is rising so fast
Gold is seen as the ultimate safe haven. Central banks are making massive purchases and investors are seeking protection against inflation, geopolitical tensions and high government debt.
While savings slowly lose purchasing power due to inflation, gold has historically tended to retain its value. In periods when currencies are under pressure or confidence in governments is declining, capital often flows towards the precious metal.
The recent rise once again underlines why gold has been used for thousands of years to protect against economic uncertainty.
Periodic investing works
The strategy behind this example is simple: invest a fixed amount every month, regardless of the price. This method is known as Dollar Cost Averaging.
By buying in spreads, you avoid the risk of investing everything at a peak. At the same time, you automatically benefit from the long-term trend.
The recent gold rally shows that not only crypto can deliver extreme profits. Sometimes the biggest surprise comes from an asset that has been around for thousands of years.
Source: https://newsbit.nl/e100-per-maand-in-goud-sinds-2024-dit-was-je-enorme-winst-nederlanders-en-belgen-krijgen-gratis-zilver/
