|Gold Price History|
Gold has always been one of the most important monetary standards throughout history of man kind. Knowing gold price history is an understanding what happened in the past and that’s what makes the difference between an average investor and truly great investors. After all, gold is real wealth, and it’s the only asset that’s not at the same time someone else’s accountability.
Let’s go back in history……Egyptian Pharaohs issued the earliest gold coins, around 2700 B.C., but they were primarily as gifts for friends and not for commerce. Gold circulated as currency unofficially in the U.S. since the beginning… using coins minted in other countries like Spain. But the U.S. did not have its own gold coinage. It wasn’t until the Coinage $19.3 Act of 1792 established official U. S. monetary units based on a world Gold price of 9 per Troy ounce. Since gold is measured in troy ounces, and the price of gold is typically stated in terms of the cost of one troy ounce.
* One ounce is equivalent to 31.1 grams or 0.07 pounds.
The United States usually determines the historical price of gold. Congress changed the gold specification of money in 1834 and again in 1837 when it was set at $20.67 per ounce. In 1968, a two-tiered pricing structure was established, and by 1975 the price of gold was allowed to vary. Also in 1971 President Nixon ended the US gold standard. At that point the price of gold bullion was allowed to float freely and find its own level. In January of 1980, the price of gold rose to $850.00 USD, averaging about $615.00 USD per ounce, and by the year 2000 the price dropped around $272.00 USD. Since the early 2000s, however, the price has risen again, setting new records in September 2011, the prices reached new levels as they moved up to a record breaking high price of $1,920 USD. These rates are still quite high considering where they were just a decade ago.
Gold prices will not remain this high for long! This year the world will begin experiencing an official pardon. Various factors are affecting this price drop and the US economy is one of them. As the US economy strengthens, investors will begin to offload their gold and return to investing using the US dollar. That means demand is going to fall, as supply increases and therefore it should push the prices down. If you are looking for a good time to sell, there is no time like the present since the prices are already up. If one is interested in selling gold, it is in your best interest now since the price is high.