Long-term Gold Investment Plan

Before anything else, please allow me to clarify that the current article, as well as other articles I have published regarding the value of investing in gold (e.g. here and here), are not intended to promote our gold program. The profit we generate from selling 1gr gold bars, which is the main focus of this article, is almost negligible. I have elaborated on the reasons for this in one of my previous articles. No one sells 24-karat gold at a significantly lower price than the market rate, even when purchased in large quantities. All gold sellers adhere to the current market price, and we are no exception. Consequently, we do not make any substantial profit, especially considering the points and cashback rewards we offer to our gold buyers, or sometimes we merely break even, making it hardly worth the time and effort for those solely interested in profit-making. Therefore, when discussing the purchase of gold, I am not advocating for any specific product. I am simply discussing an avenue that can potentially increase your wealth without active involvement.

You may wonder why we are selling gold on the site if we are making little to no profit.

I have addressed this in various other articles, particularly in my primary gold article. While we understood that selling gold wouldn’t yield significant profits, we made a conscious decision to do so, and we will continue to do so because generating profit was not the primary goal of our gold program from its inception. Our aim is to offer unique products and services with distinct features and benefits that no other website or company has provided, not only to further differentiate and distinguish the LuckScout Community but also to assist our members in safeguarding their wealth against inflation and capitalizing on the strong upward trend of gold. If you examine the numbers, you will acknowledge the validity of our approach. When we initially started selling gold on LuckScout, which hasn’t even been a year yet, we sold our 1g gold bars for less than $95 or approximately $100-110 (the exact figure eludes my memory). Presently, we are selling them for $140!

A 47% price appreciation in less than a year is quite surprising, isn’t it? I didn’t anticipate such a substantial surge when I wrote my main gold article several months ago and when we launched our gold program. However, I clearly outlined in that article, as well as in subsequent publications (e.g. here), why the price of gold was poised to experience strong growth. It turns out I was correct. Those who took my advice seriously and took action are now reaping the rewards of their decision. However, they would likely benefit even more if they continue to make regular purchases and hold onto their investments for the long term, as gold typically yields profits over extended periods. You can’t simply buy now and expect to sell for a significant profit next month or even next year, especially if you’re also paying for shipping. The recent 47% price appreciation was remarkable, but it’s important to recognize that gold prices won’t sustain that level of momentum indefinitely. While the price will likely continue to appreciate over the long term, the pace will likely slow down and won’t consistently soar as it did recently, though it could potentially rise even faster. Ultimately, we must consider the average numbers and the broader perspective when evaluating gold investments.

Long-term Gold Investment Plan

The price of a 1g gold bar is currently $140 CAD. If you opt to purchase only one 1g gold bar every month instead of saving $140 monthly, and you maintain this routine consistently for 10 years, you will have invested a total of $33,875. However, the value of the 120g gold you have accumulated will be $62,617, which is $28,742 more than the amount you initially invested. This calculation assumes that the price of gold increases by an average of 1.68% each month, mirroring the trend observed over the past 33 years.

On the other hand, if you save $140 per month instead, the purchasing power of the $16,800 you will have amassed after 10 years will decrease to $15,934 due to inflation, resulting in a loss of $865 in real value.

You might argue that a $28,742 profit over a 10-year period isn’t substantial. While that may be true, it’s worth noting that investing $140 per month isn’t a significant investment either. People often spend and squander much more than $140 regularly. Furthermore, this $28,742 profit can grow substantially to $133,853 if you choose to purchase a 5g gold bar every month instead.

I have already elaborated on this topic in greater detail in previous discussions found here and here. Today, I have revisited the numbers and updated the Excel spreadsheet that performs all calculations, allowing you to explore various outcomes with different quantities of gold.

It’s essential to emphasize that this is intended as a long-term investment strategy. Hence, I provided a 10-year investment example. The price of gold has shown an average annual increase of 1.68% over the past 33 years. However, it’s important to note that 1.68% represents the average monthly price appreciation over this period. Consequently, there may be periods where the price declines temporarily, followed by upward movements, ultimately reflecting an overall upward trend. Therefore, one should not anticipate significant profits in just a few months or even years. This investment strategy requires a long-term commitment, with holdings ideally retained for at least 10 years.

Once again, I want to reiterate that I am not offering any investment or financial advice. I am simply sharing factual information that may enhance your financial situation or, at the very least, safeguard your funds against inflation. Whether you choose to implement the strategy outlined above is entirely your decision.

We achieve our goals, not immediately, but slowly and surely!