Understanding The Gold Prices Chart

A simple way to keep an eye out for the economy’s current state is to look at the gold and silver prices. A simple barometer that can be used by the average person to gauge the state of the economy is gold prices. This could be useful for investors who are able to see the details of the weakening dollar, slow economic growth and slow job growth.

Investors want to protect their wealth by investing in gold. This is why they shift their holdings from the US dollar to gold. You have good reasons to make that transition considering the history paper money has.

The news regarding current gold prices is steady. The price is rising steadily and many expect it to go much higher. This remains to happen, but investors who are new to the market seem not to be scared of making an investment. Even seasoned investors continue making purchases on dips to the gold price chart. Look at the history of gold prices over 40 years and you can see how volatile it has been. In 1980, gold reached $800 per troy ounce. Today, gold is worth $1350 per ounce and seems to be climbing.

Gold’s price is subject to volatility for many reasons. Over thousands of centuries, gold and silver were money. People across the globe are familiar with the idea that these metals can be used as money. From the very beginning of civilizations, money was accepted as money by everyone. War was fought over huge amounts of silver or gold. Kingships were shaped by their ability to accumulate or lose gold and/or silver.

However, the American dollar paperback has been around less than 300 years. Over time, paper currencies have become worthless after they are out of circulation. If that happens to dollar, gold and silver holders will continue to prosper while paper money users will lose their stores of value.