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Significant Events Since 1958 Affect U.S. Gold Prices
 | By David L. Ganz, Numismatic News
September 10, 2008 |
According to the U.S. Geological Survey there are a number of significant events affecting U.S. gold prices over the last half century:
1961 - The London gold pool was established in which U.S. central banks and seven other nations agreed to buy and sell gold to support the $35 per troy ounce price that had been established on January 31, 1934
1968 - The London gold pool sustained enormous losses and was discontinued; the two-tier gold price was established, one tier was for official monetary transactions, the other for open-market transactions
1971 - President suspends convertibility of dollar into gold, dollar devalued by 7.9%
1972 - Official U.S. gold price increased to $38 per ounce
1973 - Official U.S. gold price increased to $42.22, dollar devalued, two-tier gold price terminated, Organization of Petroleum Exporting Countries (OPEC) oil embargo begins
1974 - U.S. citizens allowed to hold gold bullion and coins for the first time in 40 years
1975 - U.S. Treasury begins public sales of gold stocks
1976 - International Monetary Fund (IMF) begins 5-year gold sales program, IMF auctions and lower inflation outlook drive gold prices down
1977 - Hiatus in U.S. Treasury gold sales
1978 - U.S. Treasury resumes selling gold, Middle Eastern investors increase gold purchases
1979 - Soviet Union invades Afghanistan; political upheaval in Iran, taking of U.S. hostages
1980 - Gold price peaks at an historic daily high of $850 per ounce on January 21, IMF completes 5-year gold sales program
1982-88 - Fluctuating world currency exchange rates, increasing concern about U.S. trade and budget deficits and banking problems, and Third World debt
1989-91 - Conflict in the Persian Gulf and the breaking up of the Soviet Union, erosion of gold's role as a safe haven for investors, generally weak economic growth worldwide
1992-96 - Gold price remains relatively stable
1997-98 - Central banks of several countries sell large shares of gold holdings to meet common-currency criteria for European Union or to demonetize; bank failures or insolvencies in East and Southeast Asian countries
1999-2008 - The new year started with $840 an ounce gold, a slow and steady rise from past years.
As 1999 turned to 2000, gold was at $272.15; by 2001, it went to $278.70. Then came 2002 and gold's price went to $346.70. The next year, the price closed at $414.80. By 2004, the price was at $438.10, then in rapid succession (2005) $517.20; (2006) $636.30 and last year $833.20.
The accompanying chart shows daily (Monday to Friday) pricing in 2008 starting Jan. 2 for gold and its allies, silver and platinum. Palladium is included for convenience. (Prices courtesy of Kitco.com).
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