Gold Price


Gold price is a strong indication of both the current state of the economy, as well as what the future holds. Check out the latest gold spot price (click on the link to the right) or read the following article to find out just how much of an impact gold prices have.

 

Historical Gold Prices

 

gold priceThroughout history gold prices have been very stable. In matter a fact the official U.S Government has only changed four the golf price 4 times since 1792. This changes once two-tier pricing system was created in 1968 and the price of gold become free to fluctuate.

This is when gold really took of and the price rose from $36.02 in 1970 to %615 in 1980. That is a 1,707% rise in just ten years per troy ounce.

Then after 1980, gold has started to fluctuate but still stayed on average around $350 to $460 from 1981 all the way to 1998.

Why all of this happened?

The biggest reason for all of this was the fact that the Hunts brothers, two Texas billionaires, were worried about US letting go of the gold standard in 1971, so they decided to buy out all the sliver they could. Long story short once the restriction and limits were imposed on the investors which drove the hunts brother to bankruptcy.

All of this teaches us a lot about gold, but the most important lesson is that gold is very stable despite fluctuations and outside factors. In the world were stocks can plummet in a day, gold has stood the test of time.

 

Gold Prices from 1998 to 2012

 

In 1998 the price of gold was averaging $294.24, 1999, $278.98, 2000, $279.11 and finally $271.04 in 2001. Since 2002 the gold has been on a steady rise up until 2012 which had a yearly high of 1,791.17 and low of $1540.00.

 

So why did the gold price rise?

 

One of the most important factors of gold rising is people’s lost confidence in fiat currency. This is the main reason why gold has been on the rise and almost tripled from the low of 2008, $712.50 top a high o $1,791.75 in 2012, or rising 2.5 times if you want to be specific.

One of the believed core reason for price of gold rising is inflation, but the truth is that gold rises in both times of inflation and deflation, or a cure of deflation if you like.

 

So why did the gold price fall?

 

One of the main reason of the April 2013 gold crash has been heavily debated, but the fact is that the cause and effect had major role in it. Gold’s demand was rising rapidly in a short period of time and once the perceivable ceiling was reached people started to cash out. Which of course meant the supply became bigger than the demand. Add the fact that the global inflation, which is also a major factor of gold price, peaked at 4% in 2011 has now fallen down to 2.5% and you have your why.

 

What Does The Future Hold For Gold

 

gold priceThe future might seem a bit foggy at the moment, but there are clear sky in sight. Here at gold IRA rollover counsel we believe that the future for gold is as bright as the gold itself, and $1,500 price will be the floor, and not the ceiling.

With that said, it’s important that gold works best as a long term investment, such as a Gold IRA with physical gold inside it. If we learned anything from history is that despite ups and down gold price will keep rising.



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