Gold prices have skyrocketed 120 times over 50 years! The historical gold chart reveals investment opportunities and risks

From $35 to $4,300: The Legendary Half-Century Gold Market

Gold, as an important asset of human civilization, has long carried the symbol of wealth. After U.S. President Nixon announced the decoupling of the dollar from gold in 1971, the international gold market experienced a revolutionary change. Starting from a price of $35 per ounce at that time, and surpassing $4,300 per ounce by October 2025, gold has risen over 120 times in half a century—this figure is enough to shock any investor.

Especially since 2024, driven by multiple factors such as turbulent global geopolitical situations, central banks increasing gold reserves, and rising economic policy risks, gold prices have hit new all-time highs. The increase in 2024 alone exceeded 104%, and from the beginning of 2025 to now, it has soared from around $2,690 per ounce to about $4,200 per ounce, an increase of over 56%.

The Four Major Bull Markets Behind the Historical Gold Chart

Extending the timeline to 50 years, although gold prices seem to be continuously rising, they have actually experienced four distinct upward cycles, each with its unique economic and political background.

First Bull Market (1970-1975)

After the collapse of the Bretton Woods system, confidence in the dollar disintegrated, and gold prices rapidly climbed from $35 to $183, an increase of over 400%. The core driver of this rise was public panic over the devaluation of the dollar—since the dollar was no longer linked to gold, who would still hold paper currency? The subsequent oil crisis further pushed up gold prices, but once the crisis eased and the public re-recognized the practicality of the dollar, gold retreated to around $100.

Second Bull Market (1976-1980)

The Iran hostage crisis, the Soviet invasion of Afghanistan, and other geopolitical events triggered a second oil crisis, pushing the global economy to the brink of recession. Western countries experienced soaring inflation, and investors flocked to gold as a safe haven, causing gold prices to skyrocket from $104 to $850, a gain of 700%. However, this rally was overhyped; as geopolitical tensions eased and with the dissolution of the Soviet Union in 1991, gold entered a long bear market lasting 20 years, fluctuating between $200 and $300.

Third Bull Market (2001-2011)

The 9/11 terrorist attacks changed the global political landscape. The U.S. government’s prolonged military interventions led to huge military expenditures, forcing the Fed to cut interest rates and issue bonds. Meanwhile, loose monetary policy inflated the housing bubble, and the Fed raised interest rates to curb inflation, which triggered the 2008 financial crisis. To rescue the economy, the Fed launched QE again, and amid these policy shifts, gold experienced a spectacular decade-long bull run. Gold rose from $260 to a historic high of $1,921 in 2011, an increase of over 700%. After the European debt crisis, gold prices retreated but remained above $1,000.

Fourth Bull Market (2015-present)

This cycle’s driving factors are more complex and persistent. Negative interest rate policies in Japan and Europe, global central banks increasing gold reserves, the U.S. super QE in 2020, the Russia-Ukraine conflict in 2022, the Israel-Palestine war, and the Red Sea crisis in 2023—these factors layered upon each other, collectively pushing gold from $1,060 to over $2,000. Entering 2024-2025, new factors such as U.S. economic policy uncertainties, escalating global trade frictions, and a weakening dollar index have once again driven gold to a peak of $4,300.

Is Long-Term Holding of Gold Investment Worth It?

Rather than asking whether gold is worth investing in, it’s better to ask: Compared to which assets, over what time cycle?

Looking at the entire cycle from 1971 to 2025, gold has increased by 120 times, while the Dow Jones Index has risen 51 times. In terms of total return, gold has a slight edge. But if we narrow the timeframe to the past 30 years, stock returns are clearly higher than gold.

The issue is: Gold’s returns are not evenly distributed. During 1980-2000, gold prices stagnated between $200 and $300. If an investor bought gold during that period and held long-term, it would have been a waste of 20 years. How many people can wait for 50 years in their lifetime?

Therefore, gold is more suitable for swing trading rather than pure long-term holding. The key is to understand its cyclical nature: it usually experiences a long bullish phase, followed by a sharp decline, then a consolidation period, and finally a new bull phase. As long as one can accurately capture the upward or downward segments, gold’s returns often outperform bonds and stocks.

It’s worth noting that, since gold is a natural resource, the cost of extraction continually rises. Even during bear markets, the lows tend to gradually increase. This means investors don’t need to be overly pessimistic—no matter how deep the decline, gold won’t become worthless paper.

Asset Allocation Logic Under Different Economic Cycles

Gold, stocks, and bonds have fundamentally different return mechanisms:

• Gold gains come from price differences, do not generate interest, and are essentially a game of price fluctuation.
• Bonds yield interest payments, requiring an understanding of risk-free rate trends.
• Stocks derive returns from corporate growth, requiring a long-term optimistic outlook on companies.

In terms of investment difficulty: bonds are the simplest, gold is next, and stocks are the most challenging.

From an economic cycle perspective, follow the rule of “Allocate stocks during economic growth, allocate gold during economic recession.” When the economy is good, corporate profits grow, and stocks rise; meanwhile, gold, as a store of value and safe haven, tends to be less attractive. Conversely, during economic downturns, the market re-evaluates gold’s safe-haven properties.

The most prudent strategy is to hold a diversified portfolio of stocks, bonds, and gold based on personal risk tolerance and investment horizon. Sudden geopolitical conflicts, inflation, and rate hikes can occur at any time; diversified allocation can effectively offset the volatility risk of individual assets.

Gold Trading: From Physical Assets to Derivatives

Physical Gold and Gold Accounts

Buying physical gold bars is the most traditional method, convenient for hiding assets and wearing as jewelry, but with lower liquidity. Gold accounts are like custody certificates for gold, easy to carry but banks do not pay interest, and buy-sell spreads are large, suitable for long-term asset allocation.

Gold ETFs

Liquidity is significantly better than physical accounts, trading is convenient, and after purchase, investors receive a stock certificate representing the amount of gold ounces held. The downside is that the issuing company charges management fees, and if gold prices remain stagnant for a long time, the value can slowly depreciate.

Gold CFDs and Futures

This is the preferred choice for swing traders. Both use margin trading, with low trading costs. The advantage of CFDs is more flexible trading hours (24-hour markets), higher capital efficiency, and lower minimum deposits (some platforms start at only $50), especially suitable for small investors and retail traders.

CFDs allow two-way trading—going long when bullish, going short when bearish. For example, with gold CFDs (XAU/USD), traders can leverage a smaller principal to amplify gains, while using stop-loss and take-profit tools to strictly manage risks. Compared to futures, which have high barriers and complex procedures, CFDs offer a more convenient and efficient trading experience.

Outlook: Will the 50-Year Bull Market Continue into the Next 50 Years?

This is a question that cannot be answered with certainty. The past 50 years of gold’s brilliance stem from specific historical backgrounds: the relative decline of dollar hegemony, multiple geopolitical conflicts, frequent economic crises, and central banks’ emphasis on gold reserves.

In the next 50 years, whether these factors will still dominate gold price movements remains uncertain. But one thing is clear: in a world of increasing uncertainty, gold’s status as the ultimate safe-haven asset is unlikely to be shaken in the short term. Both individuals and nations will continue to hold gold to hedge systemic risks.

Therefore, rather than predicting whether gold will experience another 50-year bull market, it’s more wise to learn how to operate flexibly within different gold market cycles—this is true investment wisdom.