Gold prices have experienced significant fluctuations over the past century, with several notable trends and milestones:

Historical Trends

1970s and Early 1980s
The 1970s saw a dramatic increase in gold prices, culminating in an all-time high in 1980. This surge was primarily due to:

• The end of the Bretton Woods system in 1971, which allowed the U.S. dollar to float freely
• The stagflation crisis in the U.S., characterized by high inflation, low economic growth, and high unemployment

In January 1980, gold reached a record high of around $665 per ounce1.1990s and Early 2000s
Gold prices experienced a significant decline during this period:

• In 1999, gold reached a local low of about $253 per ounce
• This decline was attributed to the strong performance of the U.S. economy and the U.S. dollar, reducing gold’s appeal as an alternative investment
• Oversupply in the market also contributed, as several central banks sold their gold reserves1

2008-2012: Global Financial Crisis and European Debt Crisis
Gold prices surged during this period of economic uncertainty:

• The price rose from around $730 in October 2008 to $1,300 by October 2010
• In August 2011, gold reached a new nominal high of about $1,825 during the European sovereign debt crisis1

2013-2014: Federal Reserve Policy Shift
Gold prices declined as the Federal Reserve began tapering quantitative easing:

• The price fell 29% from $1,695 in January 2013 to $1,200 in December 20141

2020-2021: COVID-19 Pandemic
The pandemic caused a significant spike in gold prices:

• Gold prices soared 27% from $1,575 in January 2020 to more than $2,000 by the summer of 20201

Recent Years
Gold prices have continued to rise, reaching new nominal highs:

• In April 2024, gold surged to new all-time highs above $2,265 per ounce
• This increase was fueled by increased Chinese demand and lingering inflation concerns1
• In October 2024, gold reached an all-time high of $2,790.072

Current Situation

As of November 2024, gold is trading around $2,560 per ounce, showing a 24.24% increase since the beginning of the year2. However, it’s important to note that when adjusted for inflation, the early 1980s peak still represents the highest real value for gold1.While gold has shown strong performance in recent years, it’s worth noting that over the long term, other investments like stocks have outperformed gold. For example, a $100 investment in gold in 1972 would be worth around $4,500 in 2024, while the same investment in the S&P 500 would be worth over $18,5001.