SideBySideGold

Gold Price History: 1971-2025

From $35/oz when Nixon closed the gold window to over $2,600 today. A complete timeline of gold's major moves and what caused them.

Updated: December 202514 min read

Key Price Milestones

1971

$35

1980 Peak

$850

2011 Peak

$1,920

Dec 2025

$2,600+

Era 1: The 1970s Gold Explosion

$35 → $850 (1971-1980)

What Happened

In August 1971, President Nixon ended the dollar's convertibility to gold, closing the "gold window." For the first time since WWII, gold could trade freely.

  • • 1971: $35/oz (fixed price)
  • • 1974: $197/oz (Americans allowed to own gold again)
  • • 1980: $850/oz (peak during inflation crisis)
  • Total gain: 2,329%

Why it happened: Rampant inflation (peaking at 14%), oil crisis, Iranian hostage crisis, collapsing confidence in the dollar. Gold became the ultimate safe haven as everything else fell apart.

Era 2: The 20-Year Bear Market

$850 → $252 (1980-1999)

Two Decades of Pain

After the 1980 peak, gold entered a brutal 20-year decline. The 1980 buyer wouldn't see those prices again until 2008.

  • • 1980: $850/oz (peak)
  • • 1985: $327/oz
  • • 1999: $252/oz (multi-decade low)
  • Total decline: -70%

Why it happened: Volcker's Fed crushed inflation with 20% interest rates. With inflation tamed and real rates sky-high, gold's appeal evaporated. Stocks entered a historic bull market. Gold was "dead."

Era 3: The 2000s Gold Bull

$252 → $1,920 (1999-2011)

The Great Comeback

Just when everyone had forgotten about gold, it began a decade-long bull market while stocks went nowhere.

  • • 1999: $252/oz (bottom)
  • • 2008: $1,000/oz (first time ever)
  • • 2011: $1,920/oz (new all-time high)
  • Total gain: 662%

Why it happened: Dot-com crash (2000), 9/11, Iraq War, weakening dollar, 2008 financial crisis, Fed money printing (QE), European debt crisis. A perfect storm of gold-bullish factors.

Era 4: Correction & Consolidation

$1,920 → $1,050 → $1,500 (2011-2019)

Pullback Then Recovery

  • • 2011: $1,920/oz (peak)
  • • 2015: $1,050/oz (correction low)
  • • 2019: $1,500/oz (recovery begins)
  • Peak-to-trough decline: -45%

Why it happened: After the crisis, the economy recovered. Fed began tapering and eventually raising rates. Dollar strengthened. Stock market boomed. Gold's safe-haven appeal faded temporarily.

Era 5: COVID & New All-Time Highs

$1,500 → $2,600+ (2019-2025)

Breaking Records

  • • 2019: $1,500/oz
  • • Aug 2020: $2,075/oz (new all-time high)
  • • 2022: $1,650/oz (rate hike selloff)
  • • 2024-2025: $2,600+/oz (new records)
  • Gain from 2019: 70%+

Why it happened: COVID panic, unprecedented money printing, inflation surge, geopolitical instability (Ukraine, Middle East), central bank buying spree, de-dollarization trends.

Key Lessons from History

1. Gold Can Stay Flat for Decades

The 1980 buyer waited 28 years to break even. Gold is not a short-term trade.

2. Gold Shines During Crises

Every major crisis (1970s inflation, 2008, COVID) saw gold surge. It's insurance that pays off when you need it most.

3. Real Rates Matter Most

When inflation exceeds interest rates (negative real rates), gold does well. When real rates are positive, gold struggles.

4. Sentiment Extremes = Turning Points

When "gold is dead" (1999) it was time to buy. When "gold to $5,000!" (2011) it was time to be cautious.

54-Year Summary (1971-2025)

Starting Price (1971)

$35/oz

Current Price (~Dec 2025)

$2,600+/oz

Total Return

+7,300%

Annualized Return

~8.5%/year

Note: This excludes the pre-1971 fixed-price era when gold was pegged at $35/oz by government decree.