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How is XIRR calculated for assets like Gold, Silver, Property, Art, etc...

edited October 2013 in Accounting
For my understanding can you please explain how XIRR is calculated for the following types of investments in mProfit

GOLD
SILVER
JEWELLERY
PROPERTIES
ART

Comments

  • edited October 2013
    XIRR calculation is exactly similar to XIRR function in Excel. It works on the principle of date wise cash inflows and cash outflows. So, it works the same for any assets including Gold, Silver etc. same as Stocks and Mutual Funds.

    So, Buy and sell transactions of these assets will be treated in the same manner as buy/sell transactions in stocks and mutual funds. You can try entering few buy/sell transactions of Gold, Silver, etc in MProfit and compare the values in using XIRR function in Excel.
  • edited October 2013
    While I understood the Logic to calculate the XIRR for the items below. What happens in the case where there is no sale and a Asset Value is manually fed (does the system take the date of report and current value as the inflow transaction) and further more how will it effect the XIRR calculation where there is part sale of an asset (while a value is still attached to the asset)
  • edited October 2013
    Here is the answer for your query with the example.
     
    01-05-2011 – Buy - Gold Qty 10 gms @ 2500 = 25000
    02-06-2013-Sell – Gold qty 6 gms @ 3000 = -18000
    23-10-2013 (today) – Balance qty 4 gms – Current Price (manually entered) 2800 = Current Value = 11200
     
    So, XIRR % will be 7.18%

    The excel file link below has the same example using Excel XIRR function:
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