Here's some research I did to explore what caused gold prices per gram to rise (and then) fall so dramatically in the first 3 months of 1980. When people refer to the spot price of gold, they are simply referring to the Gold Price Per Gram at which you could buy gold at that time. 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. But you have to be very careful about the fact that this Gold Price Per Gram was an extreme movement that didn't last long at the time. 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 following chart shows the price of gold since 1968, with some notable events in the gold market. Emperor Augustus, who reigned in ancient Rome from 31 BC. C. In 14 AD, he set the price of gold between 40 and 42 coins per pound.
The Soviet invasion of Afghanistan and the revolution in Iran were often cited in stories about gold prices in 1980. 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. Due to its value and its usefulness as a currency, the evolution of the value of gold dates back to 30 BC. 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.
To illustrate, in 301 CE, a pound of gold was worth 50,000 denarii, which is another silver-based currency. There are still many reasons to be concerned about both countries, but they don't feature much in golden stories. Commodity traders, who often trade futures, are the most likely to differentiate the spot price from the price of futures, or the price guaranteed by a futures contract. 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.
Gold has been considered precious throughout history, but it wasn't used as money until around 550 BC. C.