Posted June 09, 2018 03:33:26 A history of the price of gold is a time capsule.
But as with any great history, it also has its ups and downs.
In this case, history has its highs and lows, and the gold price has fluctuated between highs and lowes.
We know how it got to where it is today.
Here are six facts you might not know about the gold market and how it evolved from the early 1800s to the present day.
Gold was a major trading partner for the United States.
When the US became a republic in 1861, gold was a significant trading partner.
The gold standard was established in 1873, and after World War I, the gold standard’s US trading partner, the United Kingdom, became a major gold exporter.
In 1920, Britain began the process of selling its gold to the US. 2.
Gold became a critical asset for the US Treasury in the late 1800s.
Gold held sway over the Treasury’s finances for much of the 19th century.
Treasury Secretary John Hay and his wife, Sarah, held gold as part of their real estate holdings, and they were particularly fond of holding gold in the form of gold bars and coins.
Gold, the currency of the US, was the only real money available to the government.
Gold bars were worth between $30 and $100, and coins were worth more than $100.
As a result, the Treasury used gold as its primary money for a variety of transactions, including payments, tax payments, and even foreign debts.
As the United STATES began to diversify into foreign markets, gold began to lose its value.
In 1892, for example, the value of gold dropped by 80%.
In 1907, the dollar lost more than 70% of its value against the US dollar.
The Federal Reserve had to print money to keep the gold prices in check.
As it became increasingly difficult to purchase gold, gold became a scarce commodity.
In the early 1900s, the price per ounce dropped from $10 to $1.50, while silver prices plummeted by 90%.
In 1909, gold and silver prices dropped by 70% and 80%, respectively.
Gold prices spiked dramatically during the Great Depression.
During the Great Recession of 1929-33, the US stock market and the economy were in shambles.
Investors flocked to the stock market in search of higher returns.
Investors lost confidence in government and financial institutions and lost money in the process.
In 1931, the Dow Jones Industrial Average lost more on a daily basis than any single day in US history.
The price of US Treasury bonds and Federal Reserve Notes plunged to levels never seen before.
Investors were so desperate for financial gains that they lost their money in such rapid fashion that it was impossible to collect.
As investors flocked back into the markets, the prices of gold and the dollar were again high.
The government, banking system, and gold markets collapsed, and US inflation soared.
In 1934, the world’s second largest economy and the world leader in gold production, Japan, became the first country to default on its debts.
Japan defaulted on its debt in 1934 and lost $1 billion in US currency.
The United States suffered a deep recession, and by 1935, the economy was in ruins.
The U.S. was in freefall and the U. S. dollar lost 90% of all its value over the course of three years.
The following year, the U,S.
went into a deflationary spiral that lasted through the 1970s.
The Great Depression was a profound event that left an indelible mark on the U S economy.
The next five years of the Great War, the Great Leap Forward, and World War II all contributed to the US. economic collapse.
By 1944, the war was over, but the depression lingered.
The financial sector was still struggling, and there was widespread unemployment.
In 1945, the Federal Reserve Board announced the Fed’s first gold standard.
As soon as the Federal Bank of New York began purchasing gold in 1941, prices surged.
In 1946, gold prices soared to a high of $50,000 per ounce.
In 1949, the stock and bond markets crashed.
In 1950, the Fed created the Federal Open Market Committee, which was tasked with managing the price and supply of the U-S dollar.
By 1956, gold had hit $1,000 an ounce, the highest price ever recorded by the Federal reserve.
By 1960, gold, silver, and copper prices had skyrocketed to over $3,000 and $3.50 per ounce, respectively.
By 1964, gold’s price had tripled.
Gold’s price in 1960 was equivalent to more than two times what it was in 1962.
Gold continued to soar through the 1960s, peaking in 1968, when the U’s dollar was worth more money than gold.
By 1971, gold averaged $3 per ounce and silver was around $4 per ounce by