Gold CAGR in different currencies

October 16, 2024 3 min read

Gold: A Safe Haven and a Strong Investment

Gold has long been a valuable asset for investors all over the world. It serves not only as a hedge to protect against economic downturns but also offers solid returns over time. Many people think of gold as something that just sits there, but the truth is, it has provided steady growth in various currencies over the years. Gold’s performance across different countries shows how reliable it is for both protecting wealth and growing it.

Gold’s Impressive Returns Across Different Currencies

When we look at the returns of gold in different currencies, the numbers are quite striking. In Euro terms, gold has grown at an average annual rate (CAGR) of 8.9%. In the UK, it has provided a 10% return, while in Australia, gold has grown at 9.2%. These are impressive numbers for an asset that is often seen as a “safe” investment.

But it doesn’t stop there. In Canada, gold has grown at a rate of 9% in Canadian dollars. In China, it has increased by 8.6% in yuan. Meanwhile, in Japan, where interest rates have been extremely low for years, gold has provided a fantastic return of 10.7% in yen. That’s remarkable, especially when other investments in Japan have barely grown.

Gold’s Role as a Protector and a Performer

One of the reasons why gold is such an attractive investment is because it offers protection while also delivering strong returns. In times of economic uncertainty, gold often rises in value. This makes it a great way to safeguard wealth. At the same time, it has proven that it can provide significant growth over the years, regardless of the currency in which it is measured.

For example, in Swiss francs, gold has shown a return of 6.5% over the last 24 years. In India, gold has grown at an impressive 12.2% in Indian rupees. These returns are not only keeping pace with inflation but far exceeding what many other asset classes have been able to deliver.

Consistent Growth Over the Years

What makes gold even more appealing is its consistency. It has delivered strong returns over the long term while also providing protection during times of financial instability. When you compare this to other asset classes, it becomes clear that gold is unique. It acts like insurance for your wealth, but at the same time, it is an investment that grows.

For the last 24 years, gold has performed better than many traditional investments. People who invested in gold 24 years ago have not only preserved their wealth but have also seen it grow steadily over time. This shows that gold is not just a short-term safe haven but also a reliable long-term investment.

It’s easy to overlook the importance of gold when the stock market is doing well or when other investments are popular. But the data is clear: gold has provided both protection and growth. If someone is still unsure about the value of gold, the numbers should convince them. Gold has been there, delivering consistent returns, while also serving as a shield during difficult times.

Investors around the world have benefited from gold’s ability to protect their portfolios and deliver returns that few other investments can match. With a CAGR of 12% in Indian rupees and strong returns across the board in other currencies, gold continues to prove its worth. Ignoring gold means ignoring an asset that has both grown and safeguarded wealth for many years.

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    Gold CAGR in different currencies