Top 10 Interesting Facts About Gold Value Per Ounce History
Curious to learn facts about gold value per ounce history? We have done the research so you can find out how gold value per ounce changed over the course of human history.
1. Gold has a long history of being used as monetary equivalents in various parts of the world. According to historical data the first time gold was used as means of trading was about 700 B.C. Ancient Greek Civilizations and Roman Empire used gold as a bartering method for goods, foods and services. However, the first civilization to ever introduce gold coins as money was China around 600 BC.
2. Gold specie standard was first implemented in British West Indies around early 1700’s which allowed to tie gold value per ounce to certain circulating gold coins, namely, Spanish doubloon. Only years later, in 1821 Britain adopted gold specie standard and all European countries followed the suit.
3. The later part of the 19th century is when the famous gold standard was introduced in major European countries. At this point gold value per ounce was directly tied to various European National currencies equivalents.
4. USA accepted their gold standard to be pegged to the Gold Eagle unit in the late 19th century, while Canada adopted both the Eagle and Gold British Sovereign gold standard.
5. However, early 20th century and WWI forced European economies and economies all over the world to print more money to fund significant military expenditures which in their turn virtually eliminated direct correlation between gold value per ounce to national currencies all over the world. Some countries tried re-establishing the gold standard, however, severe budget deficits of post WWI countries inadvertently led to hyperinflation in the 1920’s and the Great Depression.
6. Great Depression coupled with imminent WWII could not have supported the re-establishment of the gold standard. Banking system collapse in the US was partly caused by millions of investors withdrawing their funds from banks and financial institutions, hoarding gold coins, gold bullion bars, gold ingots and certificates. US Government issued several acts in attempts to stabilize the economy, mainly 1933 Gold Confiscation Order directing all privately held gold coins, bars or even raw gold nuggets to be turned into the Federal Reserve. The Gold Confiscation Order was timely followed by another famous Gold Reserve Act of 1934 forcing all banks to turn in their gold assets into US Department of Treasury. At this point gold value per ounce was established at $35.
7. 1971 became one of the most important year for American gold value per ounce history when American President Richard Nixon virtually eliminated direct correlation of gold to dollar ratio. Flat currency came into place with the last world currency exiting the classical gold standard in 2000 which was Swiss Franc.
8. The spot price of gold has seen many ups and downs throughout the history, however, the 1980 famous price of gold spike that was registered at historical high (at that time) of $850 (or $2,395 inflation adjusted figure) was caused by a series of world events that catapulted it. This gold price spike was very short lived and quickly went down to its stable $400 mark ($1,000 inflation adjusted figure) and showcased insignificant ups and downs all the way through 2006.
9. November of 2007 became another historical year for gold value per ounce by gold reaching its 28 year historical highs of $845. Gold buying frenzy began in the US and virtually all over the world commanding high prices for physical gold and even scrap gold value. Buying wholesale gold bullion was an option for large scale investors to significantly reduce their investment costs.
10. On the 5th of September, 2011 gold price reached its absolute historical highs at $1,900 and started slowly coming down. This was the time when many individual investors and persons holding gold coins, scrap gold or jewelry were able to sell their investments and possessions to gold dealers and gold scrap buyers for unprecedented amounts.