Historical Gold Prices

Historical Gold Prices

Understanding Historical Gold Prices is the First Step to Becoming a Gold Investment Expert

Historical gold prices are just statistics snapshots relating only to the conditions under which they were taken. Like all statistics, they can be manipulated to prove just about any theory both the bulls and bears might devise. But when viewed dispassionately, and with common sense, they are the foundation for a deep understanding of the fundamentals driving past and present gold price trends.

YEAR	AVERAGE PRICE	YEAR	AVERAGE PRICE	YEAR	AVERAGE PRICE
1951	34.72	1972	58.42	1993	359.77
1952	34.60	1973	97.39	1994	384.00
1953	34.84	1974	154.00	1995	384.18
1954	35.04	1975	160.86	1996	387.69
1955	35.03	1976	124.74	1997	331.00
1956	34.99	1977	147.84	1998	294.21
1957	34.95	1978	193.40	1999	278.76
1958	35.10	1979	306.00	2000	279.76
1959	35.10	1980	615.00	2001	277.90
1960	35.27	1981	460.00	2002	309.73
1961	35.25	1982	376.00	2003	363.38
1962	35.23	1983	424.00	2004	409.72
1963	35.09	1984	361.00	2005	444.74
1964	35.10	1985	317.00	2006	603.46
1965	35.12	1986	368.00	2007	695.39
1966	35.13	1987	447.00	2008	871.96
1967	34.95	1988	437.00	2009	1087.50
1968	39.31	1989	381.00	2010	1420.25
1969	41.28	1990	383.51	2011	1650.00
1970	36.02	1991	362.11
1971	40.62	1992	343.82

Think of it as a Puzzle

Studying historical gold prices should be fun, not a tedious analysis of heaps of dry data. Be a detective looking for clues. Here are a few hints:

• Go back no further than 1972. Gold prices from the era of the gold standard have absolutely no bearing on those under the current fiat money system.
• Relate the raw data to a meaningful standard. Most inflation adjusted data took a sharp departure from reality in the 1980s, when the government began fudging the figures to fuel the credit bubble. It makes a lot more sense to think in terms of purchasing power even your own unscientific gut feel.
• Ignore the flukes. Of those, the bubble of 1980 is the bears favorite for proving their point. But flukes are just red herrings.
• Put the data into a realistic context. Like saving, gold investing is an ongoing process, not an event. Think in terms of periodic purchases over an extended period of time, not the returns for any single year.
• Pay special attention to trend shifts. Most economic shocks are transitory, short-term interruptions in the price of gold before they return to the trend. When there is a significant alteration of the gold price trend, look for permanent underlying shifts in socio-economic conditions.

Practice Thinking for Yourself

When you are just starting to look at historical gold prices, it pays to get a little guidance from the experts. GoldPrice.net has assembled a professional staff of gold specialists to answer your questions and has compiled a variety of free literature that’s yours for the asking. But your goal should be to form your own ideas and opinions, because that is how you build confidence and intuition.

Before you know it, you will have acquired a sound understanding of historic gold prices, and you will be well on your way to becoming your own gold expert