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A visual representation of gold price changes over the past 100 years

Published by Roland Uriko in category Tavex on 20.12.2021
Gold price (XAU-GBP)
GBP/oz1 495,40
  
+ GBP11,38
Silver price (XAG-GBP)
GBP/oz16,42
  
- GBP0,23

“The Visual Capitalist” created a graph displaying the change in gold prices during 100 years. Since gold is valued on world markets in United States dollars, fluctuations in gold’s price are also expressed in the national currency of the US, the United States dollar. The data displayed ends as of May 2020, when the price of an ounce was $1,726 (£1256.21).
The graph brings the reader the most important milestones in the history of gold and the economy, which have led to fluctuations in gold prices. In a hundred years, the price of gold has increased 91 times from 1920 through 2020. In percentages, the gold has risen 9135% – from $20.68 to $1,910 (as of October 14, 2020). In pounds the equivalent is from £15 to £1390.13.

Among the key developments in the monetary policy of the last century, the decoupling of the US dollar, the world’s dominant reserve currency, from gold in 1971 was by far the most significant in terms of gold. It was a marginal event, followed by a rise in the price of gold from the normalized $35 to (almost) $678 by 1980, set by free-market conditions.

In the 1980s, gold prices were stabilized and the deregulated dollar’s position as a world reserve currency was rescued largely thanks to a monetary policy enacted by then-Federal Reserve Chairman Paul Volcker, who raised interest rates to stop inflation.

Despite Volcker’s “shock therapy” in the 1980s and central bank interventions for twenty years in the 1990s, the inevitable increase in gold prices finally began in the new millennium. A combination of liberal monetary policy, financial crises, and incessant monetary printing are largely responsible. These are factors that have not abated but have only intensified in the global economy paralyzed by the Corona measures, ensuring that gold’s rise will be crucial in the long run.

Buy before the price gets higher from here.

Gold price (XAU-GBP)
GBP/oz1 495,40
  
+ GBP11,38
Silver price (XAG-GBP)
GBP/oz16,42
  
- GBP0,23

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