How to Measure Gold Investment Performance?

Gold Investment PerformanceOne factor that you may need to know is how to measure your gold investment performance, and this is a question many investors have tried to answer in various ways. One method is fairly simple and easy to follow if you are buying gold bullion.

Initially, you need to determine a time period for analysis, is it a month, quarter, year or a decade? Next, determine how much you have paid for the gold bullion at the beginning of the time measure, and include any dealer premiums and other costs and fees necessary to buy or sell the gold, whether it’s bank storage fees or any other expenses you incurred with purchasing this investment. Next look at the market value of the metal you have invested in at the end of this term. Divide the current market price value by your initial investment and multiply this number by 100 to provide with percentage performance. This should give you an idea if your investment has made a profit or suffered a loss.

If you have a gold bonds investment or other gold investment funds then you can check your investment performance without too much hassle. Comparing the performance of your choice against the gold investment performance of other similar stocks or funds can help you determine whether your investing options did better or worse on average than the other choices. There are as many ways to compare gold investment performance as there are investors, and each will have their own ideas about how this should be done. You can research different methods that have been used and you will find hundreds or more of examples and ideas for these comparisons.

If you are worried about your gold investment performance, or you have just learned how to invest in gold recently and want to check yourself, you can do this many ways. There are multiple analysis methods using the Sharpe’s, the Treynor’s, the Jansen’s, the Appraisal Measure, and many more to choose from. Once you find a method that is easy for you to use and that is effective then you should stick with it. Measuring your precious metals portfolio performance does not have to be complicated or involve pages of complex math formulas, you can do it in just a little time and with simple calculations instead.