Investing in precious metals, and gold in particular, is a wise choice for any investor. The price of gold has risen over the centuries, with a veritable explosion in recent decades. To understand this, all you have to do is look at its development since the 1900s, particularly in the light of the major crises that have marked that period. Despite the turbulence on the financial markets, gold has consistently asserted its status as a safe haven. Let's take a look back at its price, proof of its indisputable resilience.

The gold rush : a significant impact on the historical gold price

The evolution of the gold price is inextricably linked to the major events of the twentieth century. It fluctuated, reflecting a series of economic and geopolitical crises. At the beginning of the century, the value of gold was indexed to the "gold standard", in place since 1879. This system allowed currencies to be converted into gold. At the time, sterling dominated the world, but the First World War undermined the system. In 1934, the Gold Reserve Act set the price of gold at 35 dollars an ounce. From 1944 until 1971, the Bretton Woods Agreement made the dollar the only currency convertible into gold, and the two prices were aligned.

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The year 1971 marked a real turning point for gold. The gold standard and the convertibility of gold into dollars came to an end. The price of gold became free and soared. During this decade, gold rose sharply from 35 dollars an ounce to 850 dollars between 1971 and 1980. This rise was influenced by the oil crises, rising inflation and international conflicts.

From 1980 onwards, there was a veritable "gold rush" in the form of massive purchases of this precious metal. This was triggered by a period of general anxiety and geopolitical tensions, at a time when gold was seen as the only safe haven. In the space of a few days, its price rosed compared with its value in 1970. However, like most stock market rises, this record eventually lost momentum. By April, the price of gold had fallen back below $500. After rising again, it began a downward trend until the 2000s.

In retrospect, the gold price curve shows peaks and troughs during every major geopolitical event. This was notably the case during economic crises such as the subprime crisis in 2008, but also during Covid 19 and the Russian invasion of Ukraine, for example. In 2023, we saw a new record for the gold price at 2,072.22 dollars an ounce on 1 December.

The yellow metal as a bulwark against economic and geopolitical hazards

Investing in physical gold, whether coins or bars, is a strategic choice whose value has reached unprecedented heights over the centuries. An analysis of this market shows that gold is a "historical shield" against economic and geopolitical fluctuations. More than any other precious material, gold has earned a reputation as a wise choice for investors seeking a degree of stability to preserve their wealth.

The year 2022 also marked an important turning point, with central banks investing more than 1,130 tonnes of gold, according to the World Gold Council (an increase of 2.5% on 1950). The same applies to China, where demand for the metal was very strong during this period.

Buying it therefore remains a strategic choice, with investors continuing to take refuge in this asset. As the equity market plummets on massive fears of a banking crisis, gold retains its status. Will gold rise in 2024 ? The answer is very probably yes, since its price is on a historic uptrend. Even if a correction remains possible, its positive future trend is indisputable. It is the big winner of the current crisis.

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What are the forecasts and economic prospects for the gold price in 2024 ?

Based on the history of the gold price, and given the rise in geopolitical crises, particularly between Israel and Hamas, combined with the recession of the major Western powers, the quotation and price of gold should continue to rise. This environment suggests that real rates could follow a favourable trajectory. We are even expecting new record highs above the $2,000 mark.

This is also an advantage for private investors, who can take advantage of this window to invest in buying or reselling gold. That's why Godot & Fils offers a rigorous approach to jewellery buying. We offer a free valuation of your 18-carat gold jewellery. Take advantage of an optimal and transparent process by ordering your kit. When we receive it, we'll carry out an accurate appraisal of your gold so that we can offer you a proper settlement.

Consequently, a retrospective analysis of the gold price demonstrates its resilience and underlines its crucial role in times of uncertainty. The "gold rush" phenomenon further confirms its appeal during crises. Gold acts as a shield, allowing investors to preserve their capital and offering them an opportunity to grow. With the outlook for 2024 pointing to a further surge, keeping a close eye on gold prices is crucial for investors wishing to buy or sell physical gold.