Value of Gold Over the Years
History of Gold pricing
Gold has been a significant metal for thousands of years, but wasn’t utilized as money until around 55 B.C. People used to carry gold or silver money at first. If they discovered gold, they could ask the government to manufacture coins that could be traded. When Emperor Augustus, who ruled the Roman Empire from 31 B.C. to 14 A.D., set the price of gold at 45 coins to the pound, it had a significant influence across the whole Roman Empire. In 1257, the price of an ounce of gold was regulated by Great Britain at 0.89 pounds. However, most nations in the 1800s issued paper money backed by their respective gold values. The US President Nixon ordered the Fed to stop honoring the dollars’ worth in gold in 1971, ending the gold standard’s principal use as a currency value and causing the asset to become more of a store value. An ounce of gold was about $40 when the dollar was devalued, but in less than 10 years, it had risen to be worth $386.
2000 average oz of gold $272.65
2010 average oz of gold $1,420.20
2020 average oz of gold $1,769.64
And December 2022 average oz of gold $1,771.90
Gold has traditionally been regarded as a sign of riches and the ultimate form of commerce. The metal is an attractive investment because it is relatively scarce, it is resistance to corrosion, and its pliability. Because gold is one of the most legendary and desirable metals on earth, it has maintained its value for many decades. Unlike real estate, which value can fluctuate, Gold’s historical value means cash currency inflation cannot affect its worth, making it a secure long-term investment. Prices of gold increase during periods of global instability and uncertainty and it can weather more economic uncertainty than any other commodities. It remains the go-to fallback option when economies take a turn. Naturally, this increased demand for gold can cause significant price spikes. Investors pay careful attention to historical pricing data when choosing the best time to buy gold. This provides a wealth of information regarding the current state of the gold market and potential price changes for the metal in the upcoming weeks and months. Understanding past gold prices allows you to predict the metals future course and make intelligent judgments about whether to buy and sell.