Gold Price History

by admin on February 13, 2013

Gold Price History

Through all of the turmoil that the world has gone through, the price of gold is one thing that has largely remained the same. Gold, which was originally used as a form of legal tender, both in the U.S. and international marketplace, is now more widely used for investing rather than actual purchasing, so its value has changed drastically over the years. For many, gold is a commodity that is more valuable as a collection than an investment or any other type of use.

The gold rushes of dates past greatly changed the value of gold throughout those times, making anyone who mined for it a rich person very quickly in many cases. During the 19th century, there were different gold rushes that helped the gold mined towns and areas turn into booming cities overnight because of the influx of pioneers and immigrants that came to mine the gold. Cities were born and still stand tall today that were created out of the gold rush, including San Francisco and Melbourne.

During the 20th century, gold prices were determined by a method known as the gold standard. This meant that currencies in many of the western countries were attached to the price of gold, and in 1971, the U.S. government removed the U.S. Dollar from the gold standard. This left gold to find its own price on the free market, and it became more valuable and useful for investing than it had ever been before. In 1980, gold reached a record high value at the time on the market, when it was priced at $850 per ounce. This created a boom for investors who wanted to cash in on their investments, but also didn’t last for long.

The price of gold gradually declined from that point, bringing it to an all-time low since taken off the gold standard of just under $253 per ounce in 1999, which had never happened before. After September 11, 2001, the markets changed drastically, and gold has been gradually rising back up in price since then. In 2006, the value of gold reached about $715 per ounce, which was another high point for the precious metal. Gold then reached an all time high again on March 17, 2008 at $1023.50 the first time ever over the magical $1,000 mark.

It remains to be seen what will happen to the price of gold since the United States has taken an economic downturn and is heading into 2009 in facing huge financial bailouts from the government. However, many people don’t actually value the gold for what it is worth, and collecting rare gold coins can often prove to be much more lucrative than actually investing in gold and keeping up with the markets.

You can invest in gold today without even having to get your hands on any of it, which often makes it a great addition to any investment portfolio. However, like any stock, although it has remained fairly steady through the years, it is still subject to its ups and downs, making it a moderate risk for investors of all types.

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