Tracking 2012 Gold Prices

As 2012 comes to a close, many people are thinking about the best way to improve their finances for the new year. Investing is a popular option, especially with tax returns arriving in the near future, but there are several places to put your money.

Why Gold Is a Good Investment

Gold Investment

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Many financial advisors recommend stocks over purchasing gold. Stocks have high return potential, but stock prices constantly fluctuate and are one of the riskiest investments to make. Gold prices, however, are extremely stable and have been steadily on the rise for more than a decade now. This consistency promises a worthwhile profit for gold investors. It’s a smart decision to put at least part of your investment income into gold.

The History of Gold Prices

Gold Prices

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Benchmark pricing standards for gold came into being nearly 100 years ago in September 1919 in London. In the US, the afternoon fixing of gold prices began in 1968 to serve American traders. Over the past 4 decades, fluctuations in price have been normal.

  • 1970 to 1980: Gold prices steadily increased during this first decade in the US market, peaking at a high of $850 per ounce on January 21, 1980.
  • 1980 to 1999: The next 20 years were not as encouraging for gold investors. Prices steadily dropped, hitting a rock bottom low of $252.90 on June 21, 1999.
  • 1999 to 2001: Known as the ‘Brown Bottom’ period in the gold market, this short amount of time marked the end of low gold prices and the beginning of a lucrative opportunity for investors.

Gold Prices in the New Millenium

New Gold Prices

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After bottoming out in 1999, the price of gold has steadily increased since the turn of the century. Unlike the stock market or oil investments, gold prices increased by more than 300% since 2000 and continue to climb. In early 2008, investors enjoyed a new high of $865.35 per ounce. Just two months later, the price jumped again to $1,023.50 per ounce. The price of gold continues to rise.

  • December 2, 2009: Gold prices surpassed $1,200, closing at $1,215.
  • March 1, 2011: Gold prices closed at $1,432.57 per ounce.
  • August 23, 2011: A record high of $1,913.50 was set.

2012 Gold Prices

2012 Gold Prices

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Investors were not disappointed with gold prices in 2012. Prices never met the astounding benchmark of the previous year, but gold has not closed at less than $1,500 per ounce on any given day this year. Since early September, gold prices remain steady, averaging around $1,700 per ounce. Financial analysts see a trend in prices that compares to the large increase the market experienced in 2009. According to this trend, gold prices will not fall below $1,760 per ounce and are projected to increase to a lucrative $2,400 high by the summer of 2013.

With trends like these and a stability the stock market could never offer, there’s never been a better time to start investing in gold. Buying gold in 2012 promises to yield excellent returns in the short-term future.

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