Historical Gold Prices – Why Investors Need to Look Back?

Historical Gold Prices

With world’s major currencies going down due to financial crisis, it seem that people view purchasing gold bullion coins and gold stocks as the only sound stock investment alternative to protect themselves from severe inflation. Looking back at historical gold prices will help common investors realize that gold and silver just like any commodity are prone to price fluctuations.

It is important to not get overtaken by a gold investing hype and approach a gold bullion market with a cool head. The historical market price of gold had been very sensitive to the overall economic environment as we can tell by looking at multiple historical gold prices charts. During one of American major economic recessions back in the late 1970’ we were able to witness spot price of gold to go sky high but as soon as American dollar got strong again, the price of gold drastically went down in the early 1980’s and stayed low through 2002. Since 2002 historical gold prices have dramatically gone up due to emerging world economic crisis that escalated in 2007.

Everyone considering investing in gold bullion market should definitely take a look at historical gold prices to realize that gold is simply another form of commodity and its price is subject to major fluctuations depending on the overall economic situation. Diversification here is perhaps the best rule to keep to and set aside no more than 10% of your investment portfolio for investment in gold bullion coins or gold stocks.

In addition, there are many more other economic variants that affect historical gold prices besides economy and US dollar, namely, gold supply and demand, speculation and foreign markets. Nobody can predict for sure how long gold prices are going to remain high; however, looking back at historical gold prices can give you an understanding before you make your gold investment decision.