Is Gold a Good Investment? Gold Prices in the Past 20 Years

Posted on Dec 24,2014

There are thousands of businesses looking to purchase your gold, but you may be wondering if they’re pulling a fast one on you. Are they trying to offer you less than it’s worth? Are they speculating on a market that’s about to explode and you should just wait it out? Selling your gold is a great option now, as the last twenty years have seen a substantial increase in the price per troy ounce of gold (and other precious metals). Check out our comprehensive website that describes the process, the market, and some of the companies the buy and sell gold. However, if your interest is investment in the gold market, you may be wondering how much longer the gold market will be booming.

Like most markets, the gold market and those for other precious metals operate both on a pendulum—cycling through highs and lows—and in relation to other markets and world events. There have been distinct correlations made between the gold market and certain world events, such as the Iranian Revolution in 1979, and certain markets, such as the oil market. The 1970s saw a booming gold market, while the 1980s saw a bear market with decreasing gold prices. During the mid-90s, gold pries averaged a little less than $400 per troy ounce; the market price remained steady between $275 and $400 until the early 2000s, which is when the gold market became really hot. In the fifteen years since this bull market began, gold has erupted to selling at rates ranging from $1200 per troy ounce to $1400 per troy ounce. Its market price peaked at $1800 in 2011, and many experts predict that its future will depend on the fate of the US dollar.

Essentially, this website, which seems to have thorough and complete information and some easy-to-read infographics about gold production and the gold market, says that a continued economic downturn in the US could cause investors to turn to gold and other tangible assets, but the opposite is also true. If the economy and US dollar continue to stabilize and improve, gold may see a decrease in value. Regardless of either impending possibility, the demand both for raw gold and gold jewelry will continue, and possessing either can be a valuable asset to have in moderation.

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