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Gold has been around for the longest time. It has been used as a form of currency for the longest time, with many countries still having large gold reserves. Gold has never lost its value and is still very valuable as a precious metal and an investment vehicle.
It is considered a source of wealth and an investment safe haven. In fact, the price of gold is so high because investors use it as a hedge against other traditional investment vehicles.
These investors realized that the value of these investment vehicles would change with the state of the economy but that gold would remain stable. When the economy sees a downturn, so many people turn to gold as a hedge that the price of gold sees a proportional increase.
In a sense, you can say that gold is inversely proportional to the economy and other investment vehicles. But what does this mean for the price of gold? Because the prices of gold tend to increase during economic uncertainty, you can expect a surge, followed by a fall in gold prices during these times.
This begs the question, “what is the highest gold has ever been?” At the time of writing this article, the highest price gold has ever been traded at is US$2,074.88 on March 8, 2022.
This was mostly due to Russia’s invasion of Ukraine and the high inflation that rocked the world at the time. To better understand this, let’s look at the price history of the precious yellow metal and what led to the different highs and lows in prices.
A History Of The Price Of Gold
In 2019, many investors projected that gold would cross the $2000 margin. Many people doubted this, but people who had seen gold prices move from $1078.40 in January 2016 to over $1500 knew it was a possibility.
However, it was in mid-2020 that gold crossed the $2000 mark for the first time, adding more than $500 to what the price had been during the first 2 quarters of the year.
This increase was due to the economic uncertainty of the Covid-19 pandemic. Once again, a constant here is seen during most gold price surges: the economic downturn or uncertainty.
Gold saw a major surge in late 2011, with the price going as high as $1,920 per ounce. However, this peak was followed by a trough as the price dropped significantly.
The price of gold was also very high in May 2012, when it was sold at $1,548. This was followed by a crash in July 2013, when gold sold for $1,245.90. The price would remain between $1,100 and $1,300 until the second half of 2019, when it rose to $1,500.
This rise was due to rising geopolitical issues, a decelerating economy, and a softer Dollar. You should be noticing a pattern by now.
These price fluctuations were why many doubted that gold would ever cross the $2000 mark. But it did in 2020, which gave many people hope that 2021 would be a great year for people holding gold. Sadly that wasn’t the case.
There were no further gains in the price, which was a surprise. But 2022 looks promising. More people are discovering why they should add gold to their portfolios, so investors hope the yellow metal will do better this year. (Check these trusted gold IRA companies for you to invest in gold).
After reaching the new all-time high seen in March, the gold price has fallen and is, at present, almost always between $1,900 and $1,960.
Also, watch the graph of gold price history below:
Is This Fluctuation A Cause For Concern?
People who want to buy gold are sometimes discouraged by these fluctuating peaks and plateaus. They wonder if gold will have an upward trajectory. I can’t tell you for certain when gold will see a significant price increase again.
But veterans in the field believe that downturns in the prices of gold are a great reason to buy and should not be a cause for worry except if you are not going to be in the gold market for a long haul.
If you are a long-term investor, then a close look at history and the facts that are unfolding will convince you that gold prices will see an increase before the decade is over.
Supply and demand are other factors that affect the price of gold, and the forecast is that these are looking favorable and are returning to the levels that were seen during the peak in 2022. There has never been a better time to buy gold than now.
What About Price Manipulation?
Gold price fluctuations have caused a hot discussion about manipulation in the gold market. Many banks have faced probes on precious metal manipulation with sufficient proof to indict some.
Many measures have been taken to increase gold price transparency through an electronic system. However, price manipulation is still a thing. It is another topic the investor has to look out for.
Are Price Peaks A Great Time To Sell Your Gold?
I will never advise anyone to sell their gold, especially for a quick profit. Gold is a great investment option and is better kept long-term. However, if you decide to sell, these price peaks are a great time to sell.
If you also have physical gold, like coins, bullions, and jewelry, price peaks are also a great time to sell. However, you need to be careful when selling so you do not fall into the hands of stingy and unscrupulous dealers.
Getting proper and accurate information is an important part of making any form of gold investment.
Know the history surrounding the price fluctuations and stay on top of information that might cause history to repeat itself. However, this news is sometimes hard to decipher, and investing in gold can be difficult for someone who doesn’t have enough experience.
My advice is to find investment professionals and hear what they say. If you are just looking to add gold to your portfolio for the first time, find someone who knows the market and can explain it to you.
An informed investor will last longer and reap more benefits than one who jumps in without any information or preparation.
I have told you the highest gold has ever been, and I have provided you with tips on the factors that caused this peak.
I can’t tell you if gold will reach another peak anytime soon. I can tell you that gold is one of the best long-term investment vehicles and that gold prices will remain stable and see an upward trend.