Gold prices evolution
When it comes to investing in gold it´s important to know that the expert’s opinion was based on years of experience in this activity and on the historical gold prices study.
Experts always say that evidences of gold price increase are patent only at a future point in time. However, for people who start their activity in the world investment gold are not sure about what it means.
This is one of the disadvantage that find a lot of people who are interested in buying gold but they don’t do it because are not sure about the evolution of the gold.
Thinking about this situation we will try to explain simply how is the gold price evolution, having in mind the gold history and then you will be able to understand the mechanics of this asset.
To understand what gold evolution consists of, it’s necessary to know that there are many factors that affect the evolution, from the history of its origins to nowadays.
To have an idea about the gold prices evolution, it’s important that we can know the producing countries like South Africa, China, USA, Russia and others.
Also it’s important to know what is the main market for the gold or who has this precious metal. India and China are important importers, in fact, as we mentioned before in other post, the biggest gold holder is the central bank or central banks.
After the Second World War and it consequences on the economy, gold had to be matched with the only currency that keeps the balance at that time, and it was the American dollar. This currency affects the gold and it is the starting point and measurement of other currencies.
Over time, gold started being more important until 1971 when started being more in demand in the market with a price around $ 35 per ounce of gold.
Despite what they thought, golden get maximum US$830 per ounce in the early 80's. Since 80's golden has a constant phase expansion however sometimes gold fell, but never for a fully defined time.
Having in mind these aspects, it’s easier understand the gold prices evolution and how it can change in the future.
