The price of one ounce of gold has surged 120 times in 50 years | From Bretton Woods to a new all-time high in 2025

Gold has been a symbol of wealth since ancient times, serving as a medium of exchange within the economic system. Due to its high density, ductility, and excellent preservation qualities, gold is not only a currency but also used for jewelry and industrial raw materials.

Over the past 50 years, the price of gold per ounce has experienced fluctuations but overall shows a long-term upward trend. Especially since 2025, gold prices have repeatedly hit record highs. So, will this half-century-long rising cycle continue? How should gold be judged? Is it more suitable for long-term holding or swing trading? This article will answer these questions one by one.

The 50-Year Evolution of Gold Price per Ounce: From $35 to $4,300

August 15, 1971, was a pivotal moment. U.S. President Nixon announced the suspension of the dollar’s convertibility into gold, officially ending the Bretton Woods system. Since then, gold prices began to fluctuate freely.

From $35 per ounce in 1971 to surpassing $4,300 in October 2025, the price of gold per ounce has increased over 120 times. Among these, the increase in 2024 alone exceeded 104%, and from the beginning of 2025 to now, it has risen from around $2,690 to about $4,200, an increase of over 56%.

In comparison, the Dow Jones Industrial Average rose from 900 points to around 46,000 points, an increase of about 51 times. Looking at this 50-year timeline, the investment return of gold has not lagged behind the stock market and has even performed better.

The Four Major Upward Cycles of Gold in the Past 50 Years

First Wave: 1970 to 1975 (over 400% increase)

After the dollar was decoupled from gold, the international gold price jumped from $35 to $183. The initial surge was driven by public confidence in the dollar wavering—previously, the dollar was a gold exchange voucher, but now it could not be exchanged, prompting people to prefer holding gold to hedge risks. Later, the oil crisis pushed prices higher, but as the crisis eased and confidence in the dollar was restored, gold prices fell back to around $100.

Second Wave: 1976 to 1980 (over 700% increase)

Gold prices soared from $104 to $850 per ounce. This rise was fueled by the second Middle East oil crisis and geopolitical turmoil—such as the Iran hostage crisis, the Soviet invasion of Afghanistan, etc. These events triggered a global recession and soaring inflation in the West, causing gold to surge again. However, due to excessive speculation, the oil crisis easing, and the dissolution of the Soviet Union, gold prices plummeted afterward, and for the next 20 years, mostly traded between $200 and $300.

Third Wave: 2001 to 2011 (over 700% increase)

Gold prices climbed from $260 to $1921 per ounce. The 9/11 attacks triggered global anti-terrorism wars, and the U.S. lowered interest rates and issued debt to support massive military spending, which also pushed up housing prices and eventually triggered the 2008 financial crisis. After the crisis, the U.S. implemented QE easing policies, coupled with the subsequent European debt crisis, maintaining a long-term bullish trend, reaching a peak in 2011.

Fourth Wave: 2015 to present (ongoing rise)

Gold prices rose from $1,060 gradually, reaching an unprecedented high of $2,800 in 2024. This rise was driven by multiple factors: negative interest rate policies in Japan and Europe, global de-dollarization, U.S. QE in 2020, the Russia-Ukraine war, Middle East conflicts, and the Red Sea crisis. Entering 2025, escalating Middle East tensions, trade policy risks, and a weakening dollar continue to push gold prices to new highs.

Is Gold Worth Investing?

To answer this, it depends on what assets are compared and the time horizon.

Long-term 50-year perspective: Gold increased 120 times vs. stocks’ 51 times, gold outperforms.

Mid-term 30-year perspective: Stock returns are better, followed by gold, then bonds.

Volatility characteristics: Gold’s upward trend is not smooth. Between 1980-2000, gold hovered around $200-$300, yielding almost no profit for investors. Can a person wait several 50-year cycles?

Conclusion: Gold is a high-quality investment tool but is more suitable for swing trading during market phases rather than simple long-term holding. Since gold is a natural resource, extraction costs increase over time. Even after a bull market ends and prices decline, the lows tend to gradually rise. Investors should grasp this rule to avoid futile efforts.

Five Ways to Invest in Gold

1. Physical Gold

Direct purchase of gold bars and other tangible gold. Advantages include asset concealment and jewelry use. Disadvantages are inconvenient trading.

2. Gold Passbook

Similar to early U.S. dollar certificates, serving as a gold custody proof. Can record buy/sell transactions at any time, and can withdraw physical gold or deposit physical gold. Advantages include portability; disadvantages are no interest and large bid-ask spreads, suitable for long-term investors.

3. Gold ETFs

More liquid than passbooks, with easier trading. Buying ETF shares gives exposure to a certain amount of gold ounces. The issuer charges management fees, and if gold prices remain stable long-term, the value may slowly decline.

4. Gold Futures and Contracts for Difference (CFD)

The most commonly used tools by retail investors. Advantages include leverage to amplify gains, ability to go long or short, and low trading costs. CFDs are especially flexible, with higher capital efficiency, suitable for short-term swing trading and small capital investors.

5. Gold Funds

Participate in gold investment via funds managed by professional fund managers, with relatively diversified risk.

Comparing Investment Logic of Gold, Stocks, and Bonds

Their sources of returns are entirely different:

• Gold: Gains from price differences, no interest, focus on entry and exit timing
• Bonds: Income from coupons, require increasing principal and interest rate policies
• Stocks: Gains from corporate growth, suitable for long-term holding of quality companies

Difficulty ranking: Bonds easiest, gold next, stocks hardest.

Investment strategy: Prioritize stocks during economic growth; increase gold allocation during recessions. When the economy is good, corporate profits are optimistic, and stocks are favored; during downturns, gold’s hedging function and bonds’ fixed income become more attractive.