Gold, Platinum, Silver and Their Prices over the Years

When you hear the term gold, you automatically think of something precious and expensive. Since its discovery, gold has remained among the most precious and popular investments. Like most markets, the gold market is prone to speculation and instability. For years, gold has been used as a currency from the past and a standard currency for many economies of different countries. The price of gold is very important, and as an individual or investor, you need to look at the price of gold to learn more about it.

Like any other item in the market, the price of gold is influenced by factors such as supply and demand. When looking at the history of gold prices, you need to look at mainly three trends, uptrend, downtrend, and sideways. Having an idea of how the market behaves and moves is very important for an investor. Looking at a few gold historical charts will give a trend of prices over the previous fifty years or more. In the early 1970s, the price of gold increased gradually as the years passed. In 1980, gold’s price peaked, increasing from 101.50 USD per ounce to 873 USD per ounce. This was a very upward trend for gold.

Between 1982 and 1996, the price of gold went into a sideways trend. The market backed up, and the price went down from an estimated 514 USD to 281 USD, a very big difference. When you look at the price of gold in the 90s, you will notice that people thought the market of gold was dead. The prices fluctuated from a high of 325 USD to a low of 250 USD per ounce. This market situation did not last for long. In 2001, the price of gold started increasing due to several factors, and in 2011, the price of gold reached a mark of 1900 USD. Since then, the price of gold has continued to fluctuate due to several market influences, both internal and external.

Over the past recent years, there has been an increase in demand for gold. The demand for bars and coins has gradually increased, with estimates of around 6%, making 302.2 tons, mainly in Asia and the Middle East. Currently, the demand for gold is so high, but the supply is slowly diminishing, taking an unusual turn, and the value of gold has decreased. This might not be a bad sign with gold since the value is expected to rise again soon.

Silver is another precious metal; like gold, it is also used for investment. Silver has been around for more than four thousand years now. When you look at the silver market, you will find a few similarities to the gold market. Over the past several years, the price of silver has been manipulated by several factors, which have seen the value go up and down for the past 50 years or more. If you look at the price of silver in the 70s or 80s and today, you will find that the price manipulation is high. There are several historical instances where you will find the price of silver largely affected by several factors. For example, in the 1970s, the Hunt Brothers started accumulating large amounts of silver.

In 1792, silver played an important role in the monetary system of various countries, especially the USA. The US government utilized gold and silver as a bimetallic monetary form, which gradually increased the value of silver. In 1965, the US and other countries halted the monetary use of silver except in bullion coins.

By 1979, the Hunt brothers had almost cornered the worldwide market of silver. It is estimated that within the last nine months of 1979, the two brothers made 2 to 4 billion in silver speculation, having an estimated 100 million ounces in holdings. Due to this, the silver futures contracts and the silver bullion increased from 11 USD in Sep 1979 to 50 USD in Jan 1980. Within two months, the silver prices largely collapsed to less than 11 USD per ounce, the largest single-day drop in silver. After this tragedy, the Hunt brothers filed for bankruptcy in 1988, mainly due to the many lawsuits they got from the silver speculation. In 1979, Warren Buffet bought 130 million silver troy ounces at an estimated 4.50 USD per troy (totaling 585 million USD).

Today you will find that silver does not play the stronghold it used to, and it is highly valued today as an industrial commodity. Today’s prices are mainly affected by the scarcity of silver and increasing demand. Currently, banks are responsible for the price manipulation of silver prices. As the years continued, the demand for silver continued for its coin, bullion form, and industrial uses. It is believed that the high demand for silver will eventually catch up with the supply. Thus, it will affect silver prices. Over one billion USD worth of silver is being used annually, which will gradually increase, thus affecting the market of silver. Silver goes for 16 USD per ounce, expected to increase over the coming years. This is because of the non-ending demand for silver at the industrial scale.

When you think of precious metals, gold or silver will be the first thing that will come to your mind, and many will not think of platinum. Platinum is one of the most precious metals, much rarer than gold or silver. All the platinum mines today can barely fill a normal living room. The characteristics of platinum, such as the metal hardness, make it so precious and rare. Discovered in the 17th century, platinum has unique uses that make it more precious than gold or silver. Being a very high-demand mineral, platinum prices are prone to changes due to the supply and demand external and internal factors. This metal is used in many various ways and items today.

Looking at the price of platinum over the past fifty years, you will see steady growth. The price of platinum has continued to rise due to its increased demand and low supply rate. In the 1980s, platinum was approximately 15 USD per gram, which has continued to increase. From 1986 to around 2001, the price of platinum has been almost constant, ranging from 10 USD to 20 USD per gram. After the year 2001, the price of platinum skyrocketed and reached a max of almost 70 USD per gram in 2008. Since then, the price has fluctuated, reaching a low price of approximately 27 USD per gram.

Since 2011, the price of platinum has decreased, but it has continued to be steady. The price of platinum is affected by several factors. Considered precious, platinum is an industrial commodity mainly affected by demand pressures. Once the demand for this metal increased in the industry, the prices also increased. Platinum is used in automobiles, creating Jewelry and coins, and its demand increases yearly.

Another factor that affects the price is the market condition and the production of the metal. If the product is expensive or decreases, the price of platinum will be affected largely. With increased jewelry production and the automobile industry, the need for more platinum is expected to increase with time. The production of platinum continues to decrease in the main production country, South Africa, which will directly affect the entire platinum market, thus causing fluctuation in the prices. As 2015 comes to an end, the prices of platinum are accepted to increase with the increase of the platinum demand in various sectors.

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