, IncHistoric Gold Prices Drive Investment
Over the past forty years, strong investment demand has created historic gold prices. During this time, investors have sought gold to diversify their portfolios and to serve as a hedge for inflation. This confidence in gold as an investment led to an all-time high price in December 2009 and a bright outlook for 2010.
A person that purchased gold in 1970 paid approximately $37 per ounce; selling the same gold today would result in a profit of about $1,100 per ounce. To make the picture clearer, a purchase of 1,000 ounces of gold in 1970 would have cost about $37,000 and would net an impressive $1,137,000 if sold at today’s prices or 1,226,000 if sold when it reached its high of over $1,226 per ounce in early December.
While a heavy sell-off dropped the historic gold prices, the outlook is very favorable for this year. Since January 1st, prices have been moving steadily higher and are already up nearly 5% for the year. Weakness in the US dollar and a continued bleak forecast for the anticipated economic recovery has allowed gold prices to march higher. The 30% increase in gold prices for 2009 puts the commodity in position to again surpass its high. This optimism leaves 2010 as another potentially profitable year for gold investment.
Whether investing in bullion or rare coins, it is best to enlist the services of a respected gold exchange. Goldprice.net is part of the Certified Gold Exchange and offers clients excellent investment options, superior service and competitive rates for any kind of gold purchase. As historic gold prices drive investment, a wise trader will move forward with the help of a company like the Certified Gold Exchange.
Stewart Lawson
Senior Staff Writer - GoldPrice.net
