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 in 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 examining the history of gold prices, you need to focus mainly on three trends: uptrend, downtrend, and sideways. Understanding how the market behaves and moves is very important for an investor. Looking at a few historical gold charts will show 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, rising from 101.50 USD per ounce to 873 USD per ounce. This marked a significant upward trend for gold.

Between 1982 and 1996, the price of gold entered a sideways trend. The market stalled, and the price decreased from an estimated 514 USD to 281 USD, a very significant difference. When you look at the price of gold in the 90s, you will notice that people thought the gold market 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 long. In 2001, the price of gold started to increase due to several factors, and in 2011, the price reached a mark of 1900 USD. Since then, the price of gold has continued to fluctuate due to various market influences, both internal and external. At present, gold prices are around $2,790 per ounce. 

Over recent years, the demand for gold has increased. The demand for bars and coins has gradually increased, with estimates of around 6%, totaling 302.2 tons, mainly in Asia and the Middle East. Currently, the demand for gold is very 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 for gold since its value is expected to rise again soon.

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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, causing the value to fluctuate 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 significant. There are several historical instances where you will find the price of silver largely affected by various 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 systems of various countries, especially the USA. The US government utilized gold and silver as a bimetallic monetary form, gradually increasing silver's value. 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 for 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 September 1979 to 50 USD in January 1980. Within two months, the silver prices largely collapsed to less than 11 USD per ounce, marking the largest single-day drop in silver. After this tragedy, the Hunt brothers filed for bankruptcy in 1988, mainly due to the many lawsuits stemming from their silver speculation. In 1979, Warren Buffett bought 130 million silver troy ounces at an estimated $4.50 USD per troy ounce (totaling $585 million).

Today, you will find that silver does not hold the strong position it once did and is highly valued today as an industrial commodity. Today’s prices are mainly influenced by the scarcity of silver and increasing demand. Currently, banks are responsible for the manipulation of silver prices. As the years continued, the demand for silver persisted 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 is expected to gradually increase, thus affecting the silver market. Silver goes for 31 USD per ounce, a figure expected to rise over the coming years. This is due to the ever-increasing demand for silver on an industrial scale.

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When you think of precious metals, gold or silver will be the first things that come to mind, and many will not consider 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 hardness of the metal, make it so precious and rare. Discovered in the 17th century, platinum has unique uses that make it more valuable than gold or silver. Being a high-demand mineral, platinum prices are prone to fluctuations due to external and internal supply and demand factors. This metal is used in 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 was almost constant, ranging from 10 USD to 20 USD per gram. After the year 2001, the price of platinum skyrocketed and reached a maximum of almost 70 USD per gram in 2008. Since then, the price has fluctuated, reaching a low of approximately 27 USD per gram.

Since 2011, the price of platinum has decreased but remained steady. Several factors affect the price of platinum. Considered precious, platinum is an industrial commodity mainly influenced by demand pressures. Once the industry's demand for this metal increased, the prices also rose. Platinum is used in automobiles, jewelry, and coins, and its demand increases yearly.

Another factor that affects the price is market conditions and the production of the metal. If production is expensive or decreases, the price of platinum will be significantly affected. With increased jewelry production and demand from the automobile industry, the need for more platinum is expected to grow over time. The production of platinum continues to decline in the main producing country, South Africa, which will directly affect the entire platinum market, causing fluctuations in prices. As 2015 comes to an end, the prices of platinum are expected to increase with rising demand in various sectors.

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