Ana Zirojevic
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, and investing this money in various assets, including gold, was among popular decisions.
As it happens, the US Internal Revenue Service (IRS) had issued the first round of its financial assistance, called the Economic Impact Payments, under the Coronavirus Aid, Relief and Economic Act (CARES Act), in the amount of $1,200 (plus $500 for each child), starting mid-April 2020.
Investing $1,200 in gold
For those who decided to invest their stimulus check in gold at the time, this would have been moderately profitable, considering that the yellow metal has since grown in price significantly and has recently even hit its new all-time high (ATH), currently trading at $2,326.95 per ounce or $74,813.26 per kilogram.
Specifically, investing $1,200 in gold on April 18, 2020, when its price stood at $1,710.14 per ounce or $54,982.12 per kilogram, would mean that today, this investment would be worth about $1,632.84 per ounce, providing some profit for those deciding to sell it at its current price.
Gold price analysis
Indeed, at press time, the price of gold stood at $2,317.71 per ounce, reflecting a 2.52% drop in the last 24 hours, a decline of 1.35% over the previous seven days, while advancing 1.29% across the past month, adding up to the advance of 20.92% in the last 12 months, as per data on June 7.
At the same time, an American economist and gold bug Peter Schiff has observed that his favorite asset has dropped over $40 on news that, for the first time in 18 months, China did not buy any gold last month, but also arguing that:
“That’s actually bullish news as it means gold made new record highs without any help from China. Ironically, China will likely be a big buyer on today’s selloff.”
Ultimately, investing in gold when the American leadership started sending the $1,200 stimulus checks in 2020 would have been a moderately lucrative decision, as the precious metal has since risen by over 36%, and indicators suggest that its advances are far from over.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
