Since 1968 the price of gold on the open market has ranged widely, from a high of $850/oz ($27,300/kg) on January 21, 1980, to a low of $252.90/oz ($8,131/kg) on June 21, 1999 (London Gold Fixing).[36] The 1980 high was not overtaken until January 3, 2008 when a new maximum of $865.35 per troy ounce was set (a.m. London Gold Fixing).[37] The current record price was set on March 17, 2008 at $1023.50/oz ($32,900/kg)(am. London Gold Fixing).[37]
Long term price trends
Since April 2001 the gold price has more than tripled in value against the US dollar,[38] prompting speculation that this long secular bear market (or the Great Commodities Depression) has ended and a bull market has returned.[39] In March 2008, the gold price increased above $1000,[40] which in real terms is still well below the $850/oz. peak on January 21, 1980. Indexed for inflation, the 1980 high would equate to a price of around $2400 in 2007 US dollars.
In the last century, major economic crises (such as the Great Depression, World War II, the first and second oil crisis) lowered the Dow/Gold ratio (which is inherently inflation adjusted) substantially, in most cases to a value well below 4.[41] During these difficult times, investors tried to preserve their assets by investing in precious metals, most notably gold and silver.
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