Gold’s Largest Price Runs Over the Last 50 Years

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Throughout history, gold has held allure as a precious resource. From its traditional uses in jewelry, coins, and other artifacts to modern industrial and technological applications, gold has always been in demand.

But in the modern economy, one of gold’s most important roles may be as a safe-haven asset during times of economic uncertainty. Gold possesses several critical qualities that have solidified its reputation as a wise hedge against instability. Gold’s conductivity, corrosion resistance, and malleability give it intrinsic value, particularly in electronics. As a physical asset, gold has no counterparty risk, making it safer than some other financial instruments reliant on issuers or other parties. Gold is highly liquid and universally recognized, making it easy to transact. And importantly, gold has historically retained its purchasing power over time, especially relative to currencies and other more volatile assets.

These attributes have been particularly relevant to consumers in recent years as the global economy has navigated the impacts of political turmoil, trade wars, the COVID-19 pandemic, and inflation.

The Dow-to-Gold Ratio Has Leveled Out

Trends in the price of gold demonstrate the asset’s growing appeal among those seeking a stable, reliable store of wealth during this period. Over the past five years, the weekly spot price of gold has increased by more than 70%, from around $1,400/oz. in June 2019 to over $2,400/oz. in July 2024. Relative to the performance of the Dow Jones Industrial Average—a common benchmark for gold investors—gold has exhibited stability. After a sharp decline early in the pandemic, coinciding with a spike in gold prices and declining stock performance, the Dow-to-gold ratio has leveled off over the last few years.

The recent surge in gold prices amid political and economic instability is merely the latest instance of gold’s price increasing during periods of broader uncertainty. Gold prices climbed in the years following the U.S.’s abandonment of the gold standard in the early 1970s and continued to rise throughout the “stagflation” of the late 1970s and early 1980s. Prices resumed their upward trajectory after the dot-com bubble burst and recession of the early 2000s, then skyrocketed in the wake of the Great Recession of 2008 as the federal government implemented expansionary monetary policies to stimulate the economy. Prices remained elevated post-recession and have accelerated in recent years.

Gold Price Runs Over the Years

The market now finds itself in a longer-lasting gold run than any since the U.S. fully abandoned the gold standard in August 1971. For the purposes of this analysis, a gold run is defined as a period of at least six months of spot price growth without a 30% decline. The current 228-week run began in March 2020—when COVID-19 initially disrupted large portions of the global economy—and has resulted in a 59% increase to the spot price of gold.

While exceptional in duration, the current gold run ranks only eighth in terms of price growth. Many of the gold price runs with the most substantial percentage increases took place in the 1970s. Among the end of the gold standard, post-Watergate political turmoil, multiple energy crises, and rampant inflation, the era was marked by the type of instability that leads consumers to gold. During the largest gold run on record, prices surged more than 300% from November 1978 to January 1980, coinciding with historically high inflation that profoundly impacted the economy.

Below is a breakdown of the top gold price runs since August 1971, when the U.S. monetary system was removed from the gold standard. The analysis was conducted by U.S. Money Reserve—a leading distributor of government-issued gold, silver, platinum, and palladium—using the spot price of an ounce of gold. For complete results, see Gold’s Largest Price Runs Over the Last 50 Years on U.S. Money Reserve.