The price of gold has changed quite a bit over time. In ancient times, gold was often used as a form of currency. People would barter goods and services for gold. As time went on, gold became more abundant and was used to create coins. The first gold coins were minted in Lydia in about 600 BC.
Gold has always been seen as a valuable commodity. It is durable, rare, and easy to trade. Gold is also resistant to corrosion, which means it will not tarnish over time. These properties make gold an ideal investment.
Over the past few centuries, the price of gold has fluctuated quite a bit. The Gold Standard was introduced in 1873, which helped to stabilize the price of gold. The Gold Standard was abandoned in the early 1900s, which caused the price of gold to fluctuate more.
The price of gold spiked during the Great Depression as people were looking for a way to protect their savings. Gold prices also surged during the 1970s as inflation rates increased. Since 2000, the price of gold has been on the rise again. This is due to a number of factors, including economic uncertainty and political unrest.
The price of gold increased continuously throughout the 1970s, then suddenly skyrocketed in 1979, from $300 per ounce to over $600 per ounce. The price subsequently plummeted, only to rise again steadily. From the early 1980s until the early 2000s, the price of gold fluctuated very little in the United States, with 2008 being the first year that it rose above $1000 an ounce.
The price of gold fell for around a year after the surge in its value in 2008. Then, between 2009 and 2012, when the price of gold increased by the most, it rose even more. In 2009, gold dropped to $970 per ounce but then rebounded to almost $1,700 per ounce just four years later. The price has risen at such a breakneck pace recently.
After that, the price tumbled again for a few years, then stayed relatively static for several years between 2015 and 2018. Then, as if on cue, the value of gold continued to rise dramatically.
We’ve seen this before, so we know what to expect. If the price of gold repeats its historical trend, it will drop significantly for a few years. Of course, after some time, the value would likely rise. If the price of gold follows this same pattern long-term, it would be a fantastic long-term investment.
The price of gold, however, is a moving target. No one knows if the price will continue to rise or whether there will be any more gold in the world once it has all been mined. Gold is considered a less risky investment than stock trading by experts because of its greater stability, but it does not grow at the same pace as the stock market.
There is no way to know what the price of gold will be in the future. We can only examine the variables that might influence it and learn about past gold prices. We may be hopeful that this information will provide insight into the future of gold as an investment instrument.…