HOW DOES THE PRICE OF GOLD CHANGE OVER TIME AND WHY?

Gold is not just a beautiful metal, but also an important investment tool. Throughout history, its price has changed significantly under the influence of various economic and political factors. Let's look at a few key periods and events that have influenced the value of gold.

1970s: Abolition of the gold standard

In 1971, US President Richard Nixon stopped converting the dollar into gold, leading to the abolition of the gold standard. The price of gold began to fluctuate on the market. In 1973, it was around $65 per ounce, and by the late 1970s it had risen to $200 per ounce, peaking at $850 per ounce in 1980 amid high inflation and economic instability.

1980s: Decline after peak

After peaking in 1980, the price of gold began to decline. By the mid-1980s, it stabilized at the level of about $300-400 per ounce. The main reasons were measures to fight inflation and the strengthening of the US dollar.

2000s: Growth caused by the crisis

In the early 2000s, the price of gold began to rise again, reaching $1,000 per ounce in 2008 during the global financial crisis. Investors were looking for safe assets, and gold was traditionally considered a safe store of value.

2010s: New records

In 2011, gold reached an all-time high of about $1,900 per ounce. This happened due to economic instability in Europe, fears of a global debt crisis and high inflation. After that, the price decreased slightly, stabilizing at the level of $1,200-1,300 per ounce.

2020: The COVID-19 Pandemic

The COVID-19 pandemic has caused a new surge of interest in gold. In August 2020, the price hit a record high of over $2,000 an ounce as sponsors sought safe-haven assets amid global uncertainty.

Current state

As of July 2024, the price of gold remains at a high level, hovering around $1,900-2,000 per ounce. This is due to geopolitical tensions, inflationary risks and constant uncertainty in world markets.

Gold continues to be an important component of financial portfolios due to its ability to preserve value during times of economic instability. Understanding its historical price movements will help you better navigate the market and make sound investment decisions.

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