The 100-year gold price chart offers many valuable insights. In any case, historical gold charts make it clear that gold is a store of value and offers protection against growing government debts.
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Many diagrams in this article qualify as must-see diagrams:
- Historical gold price charts.
- Long-term gold price and government debt correlation.
- Gold excluding CPI.
We’ll start with the fundamental picture of gold and then focus on its monetary properties.
The value of the 100-year gold price chart
The 100-year trend of the gold price has been higher and higher in recent decades. The price of gold is important to people, including both investors and consumers, for the following reasons:
- Preservation of wealth: Gold has historically served as a store of value and a hedge against inflation. The upward trend in gold prices over the past century indicates the country’s ability to preserve wealth over time, making it attractive to individuals looking to protect their savings from the erosion of purchasing power.
- Economic stability: The long-term trend of rising gold prices reflects periods of economic uncertainty and volatility. For consumers, it prompts them to consider diversifying their investments.
- Investment opportunity: Gold as a long-term investment is justified because of its historical appreciation. Gold tends to attract investors looking for long-term growth and portfolio diversification.
- Global financial stability: Gold prices are influenced by various macroeconomic factors, including geopolitical tensions, monetary policy decisions and currency fluctuations. The upward trend in gold prices reflects persistent concerns about global financial stability for years and decades.
Overall, it is clear from these points that the historical trend of the gold price is important for investors and society.
The 100-year gold price chart
The 100-year gold price chart is an absolute beauty.
The true meaning of this historical price chart can only be understood if we think in secular terms, combining fundamentals and intrinsic value.
3 insights can be derived from this historical gold price chart:
- The long-term direction is consistently higherdespite some setbacks along the way.
- There have been quite a few periods in history when the price of gold accelerated its upward movement.
- The The rise in the price of gold was phenomenal in the 1970s due to inflation. Gold rose sharply in the period 2001-2011. The upward trend is slowing down, relatively speaking.
The three acceleration phases (bull market) are clearly visible on the candlestick version of the 100-year gold price chart (quarterly candles).
READ – Detailed historical gold price trends in our 50th anniversary gold card analysis.
January 1 – Gold is expected to continue its upward trend in 2025. After a steep rise in 2024, the new year can start slowly. However, there is no sign that the gold bull market is over when looking at the 100-year gold price chart.
An even longer historical gold price chart is below: the 300 year gold price chart. This is the longest historical gold price with any relevance today (read: in our modern economic and monetary system). The same conclusions apply as those derived from the 100-year gold chart.
There’s no reason to think gold can’t rise higher from here.
Historical gold price trend vs CPI trend
One of the most relevant correlations, if we think about the historical trend of the gold price, is with CPI (consumer price index).
What this correlation essentially says is that the price of gold tends to move higher along with rising inflation.
The historical CPI chart, in log format, is shown below. Note how the CPI was kept low, within a specific range, prior to the Gold Reserves Act. Also note how the CPI started an exponential increase since then Nixon has unilaterally decided to disconnect gold from the world reserve system of the US dollar.
If we take inflation into account and adjust the gold price to the consumer price index (CPI), the role of gold as a guarantee of wealth and purchasing power becomes apparent.
Unlike the nominal gold price, which can fluctuate significantly, the CPI-adjusted gold price shows a different pattern.
It appears relatively stable and remains within a consistent range, rather than showing strong trends. This stability is indicative of effective capital preservation and prosperity protection.
Historical gold price chart adjusted for CPI
In addition to the correlation between gold and the CPI, we find value in the 200-year gold price chart.
Key insights from this gold price-adjusted historical chart:
- The gold price (black line) shows a very strong upward trend.
- The CPI-adjusted gold price (yellow line) is quite stable, even over a 200-year period.
This once again makes the point that gold maintains purchasing power.
Must-See: Historic Gold Price vs. US Debt
The relationship between the historical gold price and US debt from 1970 to 2023 is explored in the chart below, using data from In Gold We Trust and the Federal Reserve Bank of St. Louis. During this period, gold was seen as a store of value and a hedge against economic uncertainty, with its price closely tied to concerns about the growing US national debt.
Source – We trust in gold
The U.S. national debt has steadily increased since 1970, reaching a record high of $31.4 trillion in 2023. This growth has sparked debates in Congress about raising the debt ceiling to prevent potential defaults. Taking into account federal, unfunded liabilities, the budget imbalance is more than $244.8 trillion, nearly ten times current U.S. GDP.
Rising U.S. debt often leads to inflation concerns, causing investors to turn to gold as a hedge. Furthermore, as debt levels rise, investors may look to safe havens such as gold amid concerns about the stability of financial markets.
Many central banks, especially those in the BRICS countriesknow full well that global debt is spiraling out of control. There’s a reason they hoard physical gold.
Since 1971, no paper money has been linked to gold, except for the Swiss franc, which broke its link with gold in 2000.
Today, global debt is well over $300 trillion.
Today, gold prices in China trade at a RECORD premium compared to international prices.
Second largest… pic.twitter.com/mwAuD1kNve
– Golden Telegraph September 17, 2023
Gold prices in multiple global currencies
While the historical gold price chart contains some wise lessons, we also don’t want to lose sight of the price of gold in global currencies other than the US dollar.
A recent reminder of this:
The gold price benchmark in London has hit a new record high.
It’s getting hot.
– Golden Telegraph December 27, 2023
Below you will find an overview of gold prices in world currencies. Although they are not 100-year gold price charts (‘only’ 10 years of gold price developments), this overview has a very clear message: gold is in a secular bull market.
Gold price in 100 years: conclusions
We examined the meaning of the 100-year gold price and its relevance for investors And consumers.
The article contains insights from the 100-year gold price chart:
- The upward trend of gold and periods of accelerated growth.
- Correlations between gold prices and factors such as the consumer price index (CPI) and the US national debt.
- The role of gold in preserving wealth and purchasing power.
Overall, the enduring significance of the century-old gold price trend and its implications for investors and society cannot be overstated.
Thanks to Nick Laird of GoldChartsRUs.com for the rock-solid historical gold price charts in this article.