Due to its value and its usefulness as a currency, the evolution of the value of gold dates back to 30 BC. C. 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. Emperor Augustus, who reigned in ancient Rome from 31 BC.
In 14 AD, he set the price of gold between 40 and 42 coins per pound. Here's some research I did to explore what caused gold prices to rise (and then) fall so dramatically in the first 3 months of 1980. Gold has been considered precious throughout history, but it wasn't used as money until around 550 BC. The Soviet invasion of Afghanistan and the revolution in Iran were often cited in stories about gold prices in 1980.
There are still many reasons to be concerned about both countries, but they don't feature much in golden stories. 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. Interest rates are linked to inflation, so they have historically also been closely related to gold prices. When the strength of the dollar increases and inflation decreases, interest rates can be expected to fall at the same time as gold prices.
To illustrate, in 301 CE, a pound of gold was worth 50,000 denarii, which is another silver-based currency. 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. Despite dramatic increases in gold prices, the metal is among the three best bets for making money in commodity markets over the next six months. It had aggravated the growing lack of faith in the ability of governments to protect currencies from the erosion of inflation following recent increases in the price of oil.
The following chart shows the price of gold since 1968, with some notable events in the gold market.
