Price of Gold Hits $1000

In times of economic uncertainty, investors often turn to financial “safe havens.” These safe havens are often found in precious metals that rarely lose value.  Out of all the precious metals available for investors, gold is the most coveted.

On this day, March 13th, in 2008, the price of an ounce of gold hit $1,000 for the first time in history.  During the weeks prior, the price of save haven commodities had steadily been climbing as the U.S. economy appeared to be taking a turn for the worse.  As a U.S. recession seemed imminent investors turned to gold.  The increased demand for gold was met by a decrease in availability created by difficulties in mining the precious metal. The combination of these two factors can be directly attributed to the upward trend in price.

Passing $1,000 per ounce was a milestone for gold in 2008, but the record would be shattered in subsequent years.  After a brief dip under the $800 mark in 2009, gold increased at a steep rate, reaching a high of more than $1,800 per ounce.  As gold resources continue to dwindle and demand remains, the price for gold could pass the $2,000 per ounce mark in the near future.