Price Evolution
Market pricing trends
Historical price graph
Gold
This statistic depicts the price evolution of an ounce of gold from 1970 to 2020.
Strongly correlated to the demand, the price of gold increased the most following the financial crisis. Prior to this, gold had been in a bear market, and many countries had sold their gold reserves. As the financial crisis dragged on, gold demand grew, peaking in 2011 – the same year the gold price hit the Dollar record.
Since that time, despite prices coming down, demand has remained relatively strong. Central banks now have renewed faith in gold reserves, and private investors have a very recent reminder of how fragile a fiat currency economy is.
Supply and demand
Demand for gold often overlaps with gold supply, which is in turn a combination of gold mining and recycling.
There is currently 197,576 tonnes of gold above ground as a result of gold mining operations, and an estimated 54,000 tonnes of gold left to be mined. This means supplies are finite, and only 20% of the earth’s supply remains untapped. According to World Gold Council figures, mines produce about 2,500 and 3,000 tonnes a year. This means that, without some significant new discovery, gold supply from mining will begin to run out in the next 20 years.
Demand for gold comes from several sectors; jewellery, central banks (gold reserves), investment bars and coins, ETFs, and manufacturing. It is this diversity in demand that helps gold hold its value. As a useful metal in electronics, gold will continue to be needed in circuit boards. As a hedge, it will always be in demand from investors and central banks who are looking to protect their wealth.
