Charting the Historical Value of Gold

Although not as steep as the 1980 bubble, the price of gold is entering historic highs.

By + More

This graph compares the actual, or nominal, annual average price of gold (the blue line) with gold’s historical annual average price in 2010 dollars (the red line). As you can see, even with the four-fold rise in the gold price over the last decade, gold has still not reached the highs of 30 years ago. Additionally, gold fell from that peak, entering into a bear market for 22 years. The current bull market is not as steep as the 1980 bubble, which signifies that gold may have more staying power at these higher price levels. This chart does not include the new gold closing high of $1,377, achieved on Oct. 14, 2010. This was the 17th closing record in a little over one month.

[See Gold May Rise, But Is It Safe?]