The Impact of Investing Stimulus Checks in Gold
Over four years ago, the United States government began issuing stimulus checks as part of its aid program to citizens affected by the economic fallout of the COVID pandemic and related restrictions. One popular decision among recipients was to invest this aid money in various assets, including gold.
Investing $1,200 in Gold
When the first round of financial assistance, called the Economic Impact Payments, was released under the CARES Act in mid-April 2020, individuals received $1,200 (plus $500 for each child). Those who chose to invest this stimulus check in gold at the time would have seen moderate profits. Since then, the price of gold has significantly increased, reaching a new all-time high and currently trading at $2,326.95 per ounce or $74,813.26 per kilogram.
For example, investing $1,200 in gold on April 18, 2020, when its price was $1,710.14 per ounce or $54,982.12 per kilogram, would now be worth approximately $1,632.84 per ounce, showing a profitable return for those who sold at the current price.
Gold Price Analysis
As of June 7, the price of gold was at $2,317.71 per ounce, with a 2.52% drop in the last 24 hours, a 1.35% decline over the previous seven days, and a 1.29% increase in the past month. Over the last 12 months, gold has appreciated by 20.92%.
American economist Peter Schiff noted a recent drop in gold prices due to China not purchasing gold for the first time in 18 months. Despite this, Schiff remains optimistic about gold’s future, suggesting that China may become a significant buyer following the price drop.
Additional Insight
Investing in gold with the stimulus checks in 2020 turned out to be a lucrative decision, with gold prices rising by over 36% since then. This indicates that gold continues to be a valuable investment option, with potential for further growth in the future.
Disclaimer: The content on this site is not investment advice and investing in any asset carries risks. Capital is always at risk when investing.
