COVID-19 Gains: How Much Would $1,200 in Gold Turn into This Year?
The first half of 2020 was extremely turbulent due to the unforeseen adversity caused by the COVID-19 pandemic. Several governments across the globe stepped up and implemented an array of measures to stabilize their respective economies.
In the United States, this came in the form of Economic Impact Payments or stimulus checks. This was under the CARES Act. According to reports, the IRS went on to disperse checks amounting to $1,200 since April 2020. These checks were distributed among eligible adults, along with additional allowances for dependent children.
The primary intent of these stimulus checks was to provide immediate financial relief. While some individuals decided to spend it, a few others opted to invest instead. Cryptocurrencies certainly seemed a great opportunity at the time.
However, sticking to traditional investment tools seemed like a safer option for many. Gold was at around $1,710.14 per ounce on April 18, 2020. The increased demand for the asset mirrored global economic instability.
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Assessing Gold’s Performance: 2020-2024
In order to gauge the fruits of this investment, one must look back at gold’s trajectory from 2020 to 2024. Gold prices have certainly encountered a plethora of fluctuations. By June 2024, the price of gold had risen to around $2,302 per ounce. This highlights a notable rise throughout the past four years.
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An initial investment of $1,200 about four years ago would now yield around $1,614. This would mark a profit of $414.47, or 34.54% return, during this period. This undoubtedly shows the resilience and reliability of gold as a prominent investment tool. Cryptocurrencies, for instance, can offer the prospect of higher returns. However, they also come with an array of risks and volatility.
At press time, gold was priced at $2,302 per ounce, following a 7% drop in the last 24 hours. This comes with a 0.32% dip throughout the past seven days. However, the asset managed to surge by 17% over 12 months.