The History of Gold Prices

Gold: A Longtime Investment

For years, investors have turned to gold as protection against flat currency. These flat periods occur during economic crises and periods in which markets decline or nations are faced with outstanding debt. Since most developed economies operate under the gold standard, it has for years been the most popular precious metal investment.

History of Gold Prices

Image Courtesy of Flickr via hto2008

Gold Investments Throughout the Years

Outside of recent years, the 70s and 80s marked the most significant period of gold investment. The United States faced stark economic crisis during this decade, which remained evident based on heavy investment in the precious metal. The decade began with a gold value high of $37. By 1975, however, gold had reached $140. Gold’s value peaked in 1980 at $590 and experienced a downswing through much of the 80s and 90s.

Once 2001 arrived, gold value steadily began increasing once again. By 2005, gold values were back to 70s and 80s levels at $513. Gold markets made history again in 2010 when values reached $1,410.

So What Does the Future Hold?

Experts agree that the market still has a way to go before experiencing a full recovery. Gold values are expected to reflect this trend, as many predict that 2012 will experience yet another record, with gold values reaching the $1,800 range.

History has given every indication that investors will continue using gold as a safety blanket of sorts to protect against economic crisis. These investors enter the market in a variety of sectors, all with the purpose of coming out ahead of currency downswings. It’s a tried and true strategy that provides more opportunities than ever for citizens to hedge against a harsh market. Investors old and new should continue to inform themselves on these investments before embarking on a gold rush.