Keeping an eye on the state of the economy may be as simple as watching the gold price chart. As informed investors watch the details of the falling dollar, slow economy and lackluster job growth, a simple barometer for the average citizen could be gold prices. As the dollar looses value, investors want to maintain their wealth in a safe store of value such as gold so they change their holdings from the dollar to gold. With the history of paper money in mind, there is good reason to make the transition. Get more info about gold ounce.
The news is steady about the current gold prices. New highs are reached on a regular basis and many think the price will go a lot higher. That remains to be seen, but new investors do not seem to be afraid of the investment. Even seasoned investors continue to make purchases on dips of the gold price chart. Looking over the past 40 years of gold prices, it is obvious that gold is volatile. In 1980, gold went to $800 per ounce. The gold price today is around $1350 and seems to be continuing to climb.
The price of gold is volatile for a variety of reasons. Gold and silver have been money for thousands of years. The idea of these metals having value as money is ingrained in the minds of people across the world in every major civilization, business has been done in gold and silver from the very start of business between cultures and everyone accepted these substances as money. Wars were fought over large stashes of gold and silver. Kings rose and fell with their accumulation or loss of gold and silver.
On the other hand, the American paper dollar has been around for less than 300 years. Paper currencies have always come to the point of having too much in circulation after which time they become worthless. If that happens to the dollar, those with gold and silver will remain prosperous while those with paper money will loose their store of value.