The price of gold is in constant fluctuation day-to-day making it important for gold dealers and investors to be aware of the best times to sell and buy gold. In addition to keeping up to date on the daily spot price of gold, it’s also useful to understand the history of gold prices in the UK and the various factors that can influence these prices over time.
Cash4Gold-Now have compiled a guide to gold price history so you can make an educated and informed decision about whether now is the best time to invest in gold.
What is the price history of gold?
Generally, the price of gold has vastly increased over the past fifty years, particularly in the past two decades with the price of gold peaking around 2011 before showing a brief period of decline. There was a secondary peak around the summer months of 2020 around the time of the COVID-19 pandemic. Since then, the price of gold has fluctuated but remained at the highest level seen in many years.
Gold price history graph: the price of gold per ounce from 1970 to 2020
The chart below shows how gold prices have fluctuated over the past five decades, showing the recent peak around 2020.
What was the highest price of gold in the UK?
The highest price of gold in the UK to date is £1,574.37 per ounce which occurred in August 2020 and showed a clear peak in prices. This was during the onset of the COVID-19 pandemic which caused an economic crisis. During times of economic crisis or instability, the price of gold will increase as a result of heightened demand, as more people choose to invest in physical assets like gold that will withhold their value over time.
What is the current gold price in the UK?
You can find the official current gold price on the London Bullion Market Association (LBMA) website.
The ‘spot price’ or ‘daily price’ is determined among London’s bullion banks and is dependent on the price required to clear their outstanding orders each day. The price is agreed on at 3pm each day and published at midnight on the LBMA website with the exception being weekends or public holidays.
Why does the price of gold change each day?
There are various factors that affect the price of gold over time, including:
- Demand. As the demand for gold consumer goods such as jewellery, industrial items or electronics increases, the price of gold will increase as a result.
- Supply and production. Gold mining is predominantly carried out in China, South Africa, the US, Australia, Russia and Peru. If the supply doesn’t meet demand, the price of gold will increase. In addition, the increasing difficulty and risk involved in the gold mining process can also result in higher prices over time.
- Bank monetary policies. The Central Bank Reserves hold paper currency and gold reserves. Ideally, banks like to exchange paper currency for gold and store majoritively gold. Therefore, the price of gold rises as the banks buy increased amounts of gold to exchange for paper currency.
- Inflation. As the value of the pound or dollar fluctuates, so will the price of gold. For example, if the value of the pound was to decrease, the price of gold would increase alongside inflation as people look for other means to invest money.
- Stock markets and bond performance. An increased demand for gold can also be caused by wealth protection during times of economic crisis or uncertainty, whereby the wealthy will invest in gold due to its innate value and ability to retain value.
Value your gold today
Have you got gold lying around your home or in your possession that you would prefer to liquidate into cash? Cash4Gold-Now have decades of experience in valuing and buying gold; our process is streamlined and completely free.
To have your gold valued, simply request a gold-selling pack via our website and post your gold to us using our secure, pre-paid postage packs. We will contact you with our competitive and fair price within 24 hours of receiving your item.
