For just over a century, gold has occupied a unique place in world finance. Sometimes anchored in an international monetary system, sometimes left to the free interplay of markets, it has weathered economic crises, wars, record inflation and currency revolutions. Yet its status as a safe-haven asset has never wavered.

How has the price of gold evolved over the last 100 years, what factors have guided its fluctuations, and what can we deduce from this for today's investment strategy?

This analysis offers a comprehensive, clear overview, accessible even to neophytes, of why gold remains a mainstay of modern portfolios.

ARTICLE SUMMARY:

Over the course of a century, the price of gold has reflected global economic trends. Stable until 1971, thanks to the gold standard and Bretton Woods, it was fixed at 35 dollars an ounce. The end of the dollar's convertibility marked a turning point: gold became a free asset and its price exploded, reaching $850 in 1980 under the impact of inflation and energy crises. Between 1980 and 2000, gold prices rose more moderately, then began to rise steadily in the 2000s, driven by financial crises, Asian demand and expansive monetary policies.

Since 2020, geopolitical tensions, the health crisis and massive purchases by central banks have propelled the ounce to record highs of over $4,000 in 2025.

Influenced by interest rates, inflation and the strength of the dollar, gold confirms its role over 100 years as a safe-haven asset and its importance in a diversified wealth strategy.

1) A century of evolution: from the gold standard to modern financial markets

The history of gold prices in the XXᵉ and XXIᵉ centuries cannot be dissociated from global monetary developments. For several decades, gold was at the heart of economic systems.

- 1925 - 1971: THE ERA OF THE GOLD STANDARD

Until the early 1970s, the price of gold was relatively stable. Under Bretton Woods, the ounce was set at 35 dollars (around 32 euros*), a global monetary anchor. Variations were virtually non-existent, as gold was not yet considered a speculative asset: it was the ultimate guarantee of currency.

- 1971: THE DECISIVE BREAK

On August 15, 1971, U.S. President Richard Nixon ended the dollar's convertibility to gold. This decision turned the market upside down: gold became a free asset, subject to supply and demand.

From that moment on, the price of gold exploded:

- 1971: 35 DOLLARS (32 EUROS*)

- 1980: NEARLY $850 (782 EUROS*)

This surge was due to the inflation of the 1970s, the oil shocks and the dollar's loss of credibility.

- 1980 - 2000: RELATIVE STABILIZATION

For two decades, gold experienced a period of relative calm. On average, it fluctuated between 300 and 450 dollars (276/414 euros*), while equity markets dominated and central banks reduced their gold reserves.

- 2000 - 2020 : THE NEW GOLDEN AGE

Gold enters an almost uninterrupted bull phase, driven by :

• Globalization,
• Financial crises,
• strong Asian demand,
• expansionary monetary policies.

As you can see below, the yellow metal has risen from 280 dollars (258 euros*) to 1,800 dollars (1,656 euros*) in twenty years.

Source Trading View, quarterly view

- 2020 - 2025: THE MODERN BOOM

Health crisis, massive monetary policies, geopolitical tensions: gold reaches historic levels, exceeding 4,000 dollars (3680 euros*) an ounce in some sessions in 2025.

Demand from central banks, particularly in China, is a major driving force.

SUMMARY TABLE OF THE CENTURY'S MAJOR MOVEMENTS :

2) Factors influencing gold over the past 100 years

Gold doesn't evolve randomly: it reacts to profound variables, which highlight its strategic role.

- INTEREST RATES :

When interest rates fall, gold becomes more attractive, as its zero return becomes relative. This mechanism is extensively detailed in the analyses of influencing factors.

- INFLATION:

Historically, gold has been seen as a bulwark against the loss of purchasing power. Periods of high inflation (as in the 1970s) coincide with its strongest rises.

- ECONOMIC AND GEOPOLITICAL CRISES :

Oil shocks, wars, financial crises, pandemics: at each episode of instability, gold climbs.

- THE AMERICAN DOLLAR:

The lower the dollar, the more attractive gold becomes for international investors.

- CENTRAL BANK PURCHASES:

Over the past ten years, central banks have once again become net buyers of gold, notably China, India and Turkey. This is long-term structural support.

3) What can we learn from this century of gilded metal?

Over such a long-term period, gold has risen by over 27,000% (July 1, 1925-July 1, 2025 on the chart below). There are also five main lessons to be learned from this period:

• Gold has never lost its "safe-haven" function.
• It rises above all in periods of uncertainty
• The long term is always the winner
• Central banks now support the market
• Gold is part of a wealth management strategy

Source Trading View, half-yearly view

4) Outlook and strategy for the modern investor

Understanding the evolution of gold over the course of a century helps to guide your investment strategy. As recent financial news has shown, several trends are strengthening the yellow metal's potential.

For this reason, it is essential to :

• Spread out your purchases to smooth out the entry price.
• Focus on well-known coins (Napoleon, Krugerrand, US$20).
• Combine physical gold and financial products (ETFs, certificates) according to your profile.
• Allocate between 5% and 15% of your assets according to your risk aversion.

Conclusion

If we look at the evolution of the gold price over the last century, one thing becomes clear: the yellow metal has never ceased to play its role as a financial anchor in a world of perpetual change. Decades of inflation, currency crises, geopolitical upheavals and economic transformations have confirmed the safe-haven value of the golden metal.

Understanding the price of gold over the last 100 years helps us to understand why it remains an essential part of any wealth management strategy. Its evolution reflects global economic history and underlines its unique ability to protect savings in times of uncertainty.

Investing in gold today therefore means placing your assets in a framework that transcends economic cycles: a long-term horizon, based on a tangible, rare and universally recognized value.

*1 USD ≈ 0.92 EUR (stable rate during 2025)