Significant Events and the Price of Gold in the Last 50 Years
1961:The London Gold Pool was established; U.S. central banks and seven nations agreed to buy and sell gold to support the $35 per troy ounce price established on January 31, 1934
1968: The London Gold Pool was discontinued; the two-tier gold price was established – one tier was for official monetary transactions, the other for open-market transactions
1968: Zurich Gold Pool, a buying cartel created by key Swiss banks, is established, giving Switzerland its dominant financial position in the market
1969: Gold Exchange of Singapore opens; serves as a very important link between Far East countries and London
1971: U.S. President suspends convertibility of dollar into gold; dollar devalued by 7.9%
1973: Official U.S. gold price increased to $42.22 per/oz.; US dollar devalued; two-tier gold price terminated; Organization of Petroleum Exporting Countries (OPEC) oil embargo begins
1974: Hong Kong gold market booms; government restrictions on imports lifted
1975: U.S. citizens allowed to hold gold bullion and gold coins for the first time in 40 years
1978: Middle Eastern investors increase gold purchases with oil profits
1980: Gold price peaks at an historic daily high on January 21
1987: Birth of the London Bullion Market Association (LBMA) establishing criteria for refiners and guaranteeing quality of gold bullion bars throughout the world
1989-1991: Conflict in Persian Gulf; collapse of Soviet Union marking end of Cold War; weak economic growth worldwide
1997-1998: Central Banks of several countries sell large quantities of gold holdings to meet currency criteria for Euro; East Asia suffers economic crisis
2000: China deregulates gold markets; Chinese citizens allowed to buy gold bullion after 50 years of closed markets
2000: USA technology sector and “Dot-com” stock market crash
2001: USA “9-11” terrorist attacks in New York City; gold begins historic rise as investors seek “safe haven” in physical gold
2002: China launches gold market, opening the Shanghai Gold Exchange
2003: Introduction of the Euro devalues the U.S. dollar on the international market; oil prices hit $78/barrel; gold surpasses $350/oz.
2006: Barrick Gold and Newmont Mining predict gold reserves will be depleted in 10 years at current production rates; gold prices surge 20% yearly since 2001 to over $650/oz.
2007: Dubai and Saudi oil producers announce major gold bullion purchases to be stored in Dubai; China announces plan to increase gold bullion purchases with excess cash reserves; Vietnam opens Ho Chi Minh Trading Center, Vietnam’s first gold exchange; Gold demand outpaces supply
2007: China invites five world banks, including HSBC, Societe Generale, and Standard Chartered to join the Shanghai Gold Exchange, opening the exchange to global trading
2008: Gold price breaks through $1,000 barrier in early
2008; China opens Shanghai Futures Exchange placing additional demand on gold supply; oil prices surpass $100/barrel milestone; gasoline hits all-time high in U.S.; U.S. crippled by financial crisis; U.S. Dollar hits new lows
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