Despite the turmoil around the world, the price for gold has remained relatively constant despite the many changes. Gold, which was initially used in the U.S. and worldwide markets as legal tender, has become more popular for investment than buying. Its value has also changed dramatically over the years. Many people consider gold and silver prices to be a commodity more valuable as a collector than it is for investing or any other uses.
The gold rushes in the past significantly changed the value and made many people who mined gold rich very quickly. There were several gold rushes in the 19th century that saw gold mining areas transform into bustling cities. These gold rushes were triggered by the influx pioneers and migrants who came to extract the gold. Some of the cities that were born out of this gold rush are still standing strong today, such as San Francisco or Melbourne.
The gold standard was used to determine the prices of gold during the 20th century. This meant that the prices of gold were determined by the currencies of many western countries. The U.S. government pulled the U.S. Dollar out of the gold standard in 1971. Gold was able to find its own value on the free market and became more valuable and practical for investing. At $850 an ounce in 1980, gold hit a record-breaking high on the market. This was a great opportunity for investors to cash in their investments but didn’t last very long.
The gold price fell gradually from that point. In 1999, it reached an all-time lowest of just less than $253 an ounce, which was unprecedented. Since September 11, 2001, markets have changed drastically. Gold has been slowly rising in price. The 2006 gold price reached $715 an troy ounce. This was another record-breaking year for the precious metal. The price of gold hit an all-time peak on March 17, 2008 at $1023.50, the first ever time it had surpassed the magical $1,000 mark.