On January 1, 1975, U.S. citizens can once again own gold. Just two years earlier, an additional clause or additional provision was added to a bill that was finally approved by U.S. legislative authorities, to allow U.S.
citizens to return to owning more than 5 ounces of gold ingots privately. After the stock market crash of 1929, many investors began to exchange paper money for its value in gold. When inflation rises, the value of the dollar falls and some investors flock to gold in the hope that it will serve as a stable store of value. The following chart shows the price of gold since 1968, with some notable events in the gold market.
Due to its value and its usefulness as a currency, the evolution of the value of gold dates back to 30 BC. C. When the strength of the dollar increases and inflation decreases, interest rates can be expected to fall at the same time as gold prices. The true value of gold (in goods, not paper dollars) has been constant for literally thousands of years.
When people refer to the spot price of gold, they are simply referring to the price at which you could buy gold at that time. To illustrate, in 301 CE, a pound of gold was worth 50,000 denarii, which is another silver-based currency. From 284 to 305 AD, Diocletian further downgraded gold to 70 coins per pound initially, but coins were later issued at 60 coins per pound. Gold has been considered precious throughout history, but it wasn't used as money until around 550 BC.
The price of an ounce of gold remained completely stable and in line with the gold standard at all times. One of the main arguments I've heard against the measure is that the value of gold has fluctuated too much in the past to make it a reliable standard today. When it comes to gold, supply is affected by trade trends and by mining companies that extract more gold than they can put on the market.