As you have probably heard, the gold price has reached the highest price today. It has touched the resistance level of USD1600/oz and mark a new high of USD1601.20/oz at the point of updating this blog.
Just to let you see the evidence of the increase in gold price in real example.
We bought 2 gold bracelets in 2007 at RM75/g. The initial purpose of purchase is for investment. Just keep it until we need money for other important thing.
Let's see what is the price of jewellery today, 18th July, 2011. Source http://www.fgjam.org.my/
In almost 4-and-a-half years, the 916 gold has increase from RM75/g to RM173/gm. This is already more than double the gold price. To be exact, the increase in 916 gold is 231% during this period.
Now, I am calculating the rate of return per year of the jewellery should I sell it today.
916 gold price today : RM173
916 gold price in 2007 : RM75
Rate of return per year from the example
= 173/75 divide by 4.5 years
= 51.3% per year.
This is good or this is good? :D
This is a very real life experience to me. To double your money (in this case, in gold jewellery) in just 4 years is definitely awesome. See Rule of 72 in previous article. We should always be looking out for the highest return to double your money. And best, if you do not hold cash much, but to keep in physical gold bar or silver bar to reduce the impact of inflation in your daily life.
Upon seeing the returns, my better half was asking me during lunch today why I did not buy the necklaces as well during that time!! If only, he have persuaded me then (well, I did not want to look greedy buying everything! ;-) ), we will be smiling a bigger smile from ear to ear looking at the hike in gold prices.
See the gold price climbs for the past 2 years :
In July 2010, the lowest price was USD1158/oz. Today, it has reached 1598/oz.
The rate of return is 38% for the past one year.
P/s : Kena dapat komisyen drp kedai Kembang Jaya ni. ;-)
In GoldAlert.com, the article below is written on 17th July, 2011