The price of gold has reached a record high at $1,275.95. This record breaking figure was boosted by a demand from investors for a store value for gold.
Below we look at some key dates in gold selling and trading history:
August 1971 – US President Richard Nixon takes the dollar off the gold standard. This had been in place since the Bretton Woods Agreement of 1944 fixed the conversion rate for one Troy ounce of gold at $35.
August 1972 – The United States devalues the dollar. Gold is now $38 per ounce.
March 1973 – Most major countries who started selling gold adopt a floating exchange rate system.
May 1973 – US devalues dollar once gain to $42.00 per ounce of gold.
January 1980 – Gold hits a record high at $850 per ounce. Investors are prompted to buy gold because of strong oil prices, Soviet intervention in Afghanistan and the impact of the Iranian.
August 1999 – The price of gold drops to $251.70. This is due to concerns about central banks reducing reserves of gold bullion and mining companies who began selling gold in forward markets to protect against falling prices.
October 1999 – Gold increases once again, reaching at two-year high at $338. This was due to an agreement to limit gold sales by 15 European central banks. Also, market sentiment towards gold begins to take a positive turn.
February 2003 – Gold reaches a four year high on safe haven buying in the run-up to the war in Iraq.
December 2003-January 2004 – The price of gold breaks above $400, prompting more people to buy and begin selling gold. These levels were last reached in 1988. More investors are buying gold as risk insurance for portfolios.
November 2005 – Spot gold reaches $500 for the first time since December 1987 when it hit $502.97.
April 11, 2006 – Gold prices exceed $600, surpassing its December 1980 record. This is due to funds and investors pouring money into commodities on a weak dollar, stable oil prices and geopolitical worries.
May 12, 2006 – Gold prices peak at $730 an ounce.
June 14, 2006 – Gold falls more than a month later to $543 from its 26 year peak after investors and speculators sell out of commodity positions.
November 7, 2007 – Spot gold hits a 28-year high at $845.80 an ounce.
January 2, 2008 – Spot gold once again reaches an all time high of $850 per ounce.
March 13, 2008 – Benchmark gold trades over $1,000 for the first time in US market.
March 17, 2008 – Spot gold reaches a high of $1,030.80 an ounce.
September 17, 2008 – Spot gold once again rises by $90 an ounce. This is due to investors seeking safety amid turmoil in the equity markets.
January – March 2009 – Gold-backed exchange-traded funds report record inflows as financial sector insecurity increases safe-haven buying. Holdings of the SPDR Gold Trust rise by 45 percent.
February 20, 2009 – Gold rises to above $1,000 an ounce as investors buy bullion as a safe store of value due to major economies facing recession and equity markets tumble.
April 24, 2009 – China announces it has raised its gold reserves by three quarters since 2003. China also announces it now holds 1,054 tons of gold, boosting expectations it may add further to the reserves.
August 7, 2009 – European central banks decide to renew their earlier agreement to limit gold sales over a five-year period. This sets the sales cap at 400 tons a year.
September 8, 2009 – The price of gold once again exceeds $1,000 an ounce for the first time since February 2009.
December 1, 2009 – Gold reaches above $1,200 an ounce for the first time.
December 3, 2009 – Gold reaches a record high at $1,226.10 an ounce thanks to a weakening dollar.
May 11, 2010 – Gold reaches a record high once again at $1,230 an ounce.
June 21, 2010 – Gold jumps to a new high at $1,264.90 an ounce. This was brought on by underlying fears over an instable financial market and a weak dollar.
September 14, 2010 – Gold climbs once again, this time to a record-breaking $1,269.30.
September 16, 2010 – The price of gold breaks records once again at $1,275.95.
Author bio
This article was written by The Gold Company and offers information on gold trading and selling gold.