Investing in precious metals, such as gold and silver, is an attractive option for many people. To make an informed decision, it is important to monitor the value of your investment. A crucial part of this is calculating the average purchase price. In this article, we explain how you can easily do this yourself.

• Assessment of Returns: Knowing the average purchase price allows you to determine if you would sell your precious metals at a profit or loss.
• Tax Filing: When filing taxes, the average purchase price is often important to calculate the profit or loss on the sale.
• Avoiding Emotional Decisions: Knowing the average purchase price can help avoid emotional decisions and act more rationally.

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• Gather Your Data: Create an overview of all purchases you have made. Note the date, the amount of precious metal, the total price (including any costs), and the price per unit (e.g., per gram) for each purchase.
• Calculate Total Costs: Add up all the total prices.
• Calculate the Total Number of Units: Add up the total number of units (e.g., grams).
• Divide the Total Costs by the Total Number of Units: This gives you the average purchase price per unit.

Example:
Suppose you bought gold three times:

• Purchase 1: 10 grams for €700 (at a price per gram of €70)
• Purchase 2: 15 grams for €1050
• Purchase 3:  5 grams for €350

Tips for Keeping Track of Your Data:

• Use a Spreadsheet: A spreadsheet is a handy tool to keep track of all your purchases and perform the calculations.
• Keep All Purchase Receipts: Store all purchase receipts in a safe place. They may come in handy later.
• Consider Software: There are various software programs available that are specifically designed for tracking investments in precious metals.

Conclusion:

Calculating the average purchase price of precious metals is a simple but important step for any investor. By knowing this value, you can make better decisions and manage your investment more effectively.

GoldRepublic:
GoldRepublic offers a real-time view of the performance of your precious metal investments, including any profits or losses. This information is easily accessible via both the website and the app, so you are always aware of the current value of your portfolio.

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