Joe Elkjer
Precious Metals Advisor
Joe Elkjer, a Precious Metals Advisor at Scottsdale Bullion & Coin since 2019, specializes in helping clients protect their assets through tangible investments. With a strong background in business and finance, he emphasizes stellar customer service and stays dedicated to informing clients about market impacts through frequent appearances on The Gold Spot.
“The public wants to make money fast, but the key is—and it’s an old-fashioned mindset—to take the long view on gold and silver prices.”— Tim Murphy, Scottsdale Bullion & Coin Precious Metals Advisor
Remember when gold prices hit $2,067.15 an ounce last August? The new all-time high price for gold. Silver prices were soaring too, reaching $28.89 an ounce on September 1, 2020.
What happened? Where’s that $3,000-an-ounce gold and $30-an-ounce silver you’ve been waiting for?
It’s coming. Just look at gold and silver’s price trajectory over the last 30 years.
Historical Spot Gold Prices
Spot gold prices from August 25, 1991 to August 25, 2021
In August 1991, you could buy an ounce of gold for $352.60. Today, the gold spot price chart shows $1,791.81 for an ounce of gold.
Historical Spot Silver Prices
Spot silver prices from August 24, 1991 to August 25, 2021.
Silver, a historically more volatile metal than gold due to its use in industry, took a similar trajectory: you could buy an ounce of silver for $3.90 in August 1991 versus $23.95 in August 2021. The only difference? The silver spot price chart shows silver prices did not beat their Great-Recession-record high of $41.70 an ounce during the pandemic crisis (see what a great hedge silver is against unexpected economic disruptions, though?).
Why Take the Long View?
Just imagine if you’d bought gold and silver in 1991 and patiently held onto them. You’d be enjoying a 408% and 514% jump in the value of your precious metals investments right now, respectively.
What about stocks?
Stocks are soaring right now, but you know what? Assets that rocket to the moon can come crashing back down quickly. Remember when the 2001 dotcom bubble burst? The 2008 financial crisis? The 2020 COVID-19 pandemic? Such extreme swings from high to low result in lower long-term gains: just 10.7% for stocks over the last 30 years.
What about Bitcoin?
Who knows. Bitcoin didn’t exist 30 years ago, and it might not 30 years from now—maybe sooner with the increasing Government crackdowns, competition from alternative cryptocurrencies, and tens of millions of dollars’ worth of coins stolen by thieves or lost along with investors’ passwords. Poof gone. Just like that.
Now, maybe taking the long view is old fashioned, but we can learn a lot from history, like…
…how gold and silver prices have been steadily rising…
…how fast plays like stocks and cryptocurrency can make you rich one day and poor the next…
…and how to balance America’s national budget.
You know what else you can learn from history? Which gold and silver investments have performed the best (hint: not bullion!). Order your FREE Precious Metals Investment Guide to see now.