Gold has outlasted every empire, every currency, and every central bank that ever existed. While governments have printed, debased, and abandoned countless paper currencies, gold remains exactly what it has always been: real money that no institution controls.
The story of gold prices is not just market history. It's the story of what happens when governments promise one thing and deliver another.
What Gold's All-Time High Tells Us
Gold reached $2,790 per troy ounce on October 30, 2024. That number reflects decades of monetary policy decisions, economic instability, and the growing realization among investors that paper promises have limits.
| Date | Price | What Happened |
|---|---|---|
| Aug 2020 | $2,074 | COVID-19 uncertainty, record money printing |
| May 2023 | $2,081 | Silicon Valley Bank collapsed |
| Mar 2024 | $2,220 | Markets anticipated multiple Fed rate cuts |
| Oct 2024 | $2,790 | Election uncertainty and global tensions |
The 20th Century: How Gold Lost Its Legal Role
The Gold Standard
Under the classical standard, the dollar was fixed at $20.67. This binding commitment limited government spending.
The Shift (1934)
The Gold Reserve Act reset gold to $35/oz and outlawed private ownership, allowing the government to expand the money supply.
Nixon Shock (1971)
President Nixon ended convertibility. The dollar became pure fiat. By 1980, gold surged to $850—a 2,300% increase.
The Math Is Simple
Consider what $35 bought in 1971 versus today.
- In 1971, $35 purchased one ounce of gold.
- That same ounce is now worth over $2,700.
Meanwhile, $35 in 1971 dollars has a purchasing power of roughly $270 today—an 87% loss. If you held dollars, you lost. If you held gold, you didn't.
Gold's Role in Your Portfolio
Gold doesn't predict the future. It measures the present. And right now, it's measuring decisions made by central banks over the past half-century.