This tool calculates the inflation-adjusted return based off the price of gold over time. You can enter the amount of dollars you want to invest into gold and it will show you the total value of your investment today. If you are looking to make some extra cash, this is one way to do it.
The calculator uses the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). For example, if you entered $1,000 in 1980, the calculator would give you the current value of $2,972.25. If you wanted to know what your return would be annually, the calculator would tell you that it would be 4.6%. To find out how much you could earn investing $100 per month into gold, use the calculator here.
Inflation Adjusted Gold Return Calculator
The inflation-adjusted return calculator allows you to compare different periods of time based on the current price of gold. You can use it to see how much you could make today compared to what you could make 10 years ago, 20 years ago, 30 years ago, etc.
On the Gold Return Calculator, we use the following methodology.
The gold return calculator was developed by the Federal Reserve Bank of St. Louis. This tool allows you to calculate how much money you could make investing $10,000 into gold over one year, based on current spot prices. The calculator takes the average price of gold during the previous 12 months and multiplies it by the number of days in the year.
This calculator does not take into account inflation or taxes. However, there are many calculators out there that do. We recommend checking out our inflation calculator, which includes both CPI and GDP data.
Implications of Gold Investing
Gold prices have been volatile over recent decades. But inflation has consistently outpaced any increases in the value of the yellow metal. So why are investors buying into it now?
Inflation is expected to remain low for some time, according to economists. This could mean a long period of stability for the economy and interest rates. And while there might be some volatility in the stock market, the Federal Reserve is likely to keep raising interest rates slowly.
As such, many analysts believe that gold is a good investment because it tends to rise during times of uncertainty.
Limitations on the Gold Return Calculator
The gold return calculator works best for calculating returns on investments where you know exactly what it cost to purchase the investment. If you don’t know how much you paid for the investment, you won’t be able to calculate the exact amount of gold returned. For example, if you bought $1,000 worth of gold coins at $100 per coin, you’d need to multiply $1,000 by $100 to determine the total value of the investment. However, if you purchased $1,000 worth at $10 per ounce, you wouldn’t need to do anything because you already know the price per ounce. You simply multiplied $1,000 by 10 ounces to find out the total value of the coins.
If you’re trying to figure out how much money you’ll make by selling gold, you’ll want to use the calculator to estimate how much you spent on the metal. This way, you’ll know whether you’ve actually earned enough money to cover the expense.
You might also run into issues if you buy and sell gold during leap years. Leap years occur every four years, meaning there are 366 days in each calendar year. If you buy gold in January and sell it in February, you’ll end up paying storage fees twice, once in January and again in April. To avoid this problem, you’ll need to wait until July 31st, the day immediately following the next month, to sell your gold.
Another thing to keep in mind is that transaction fee and other costs may reduce the actual profit you earn. These factors include the type of account you open, how often you deposit and withdraw funds, and the number of withdrawals you make in a given period.
Calculate Historical Gold Price
Gold prices are volatile and fluctuate wildly over short periods of time. This makes calculating historical gold price trends difficult. However, we can use data collected over longer periods of time like decades to give us a better idea of what the long-term trend might look like.
Frequently Asked Questions
Why investors like gold
The price of gold tends to move opposite to stock markets. When stocks rally, gold falls; when stocks fall, gold rises. This makes gold a good way to hedge against market volatility. And because gold prices tend to rise during times of economic uncertainty, it could offer protection against inflation.
Does gold have resale value?
Yes! You can sell gold jewelry, coins, bars, etc. But if you want to get rich quick, you should invest in something else.