Silver and gold are precious metals linked to the launching and destruction of empires. Gold prices and silver prices have always differed from each other and despite the fact that a 1 oz gold coin is currently much more expensive than a silver coin of the same weight, both metals have an inherent monetary value that has caused gold and silver prices to fluctuate over time.
The History of Gold and Silver Prices
Mother Earth produces gold and silver, man has set the value. Ever since the first golden nugget was found and silver streak unearthed, the precious metals were worthy of attention. While supply and demand still influence gold and silver prices, that is only one factors influencing gold bullion and silver bullion prices.
Since silver mining efforts launched in 3000 BC and gold maps were produced in 1320 B.C., the precious metals have been highly coveted. Overtime, the metals grew in value and various governments and entities introduced paper currency issued as certificates for gold and silver. That forever, linked paper to the precious metals.
At times gold and silver prices helped make paper money more valuable. However, derivative markets caused gold and silver prices to skyrocket and devalue the printed currency. That imbalance launched the practice of Gold Fixing in London (September 1919).
The Gold Standard and Gold and Silver Prices
When gold coins and silver coins were replaced by paper currency, the weight of the metals determine currency value. That practice converted gold weight into a cash value and the gold standard was born. In the 1930s the United States government established that each US dollar equaled a troy ounce of gold. By 1934, dollar values declined and gold prices and silver prices increased.
Because of that relationship, gold and silver prices grew for decades; each time, paper money became less valuable. That changed in the 1960s when US and European banks worked together to manipulate the market and protected value of paper currency. Fixed pricing was introduced in 1968 and is still currently used to help determine gold and silver prices daily.
Current Gold and Silver Prices
That system helped gold and silver prices rise to the current highs. While silver prices have neared $50 per 1 oz silver, gold prices have hit $1,900 per 1 oz gold. Since gold and silver are still valuable, industry experts believe that as time progresses, gold and silver prices will continue to rise.
The History of Gold and Silver Prices
Mother Earth produces gold and silver, man has set the value. Ever since the first golden nugget was found and silver streak unearthed, the precious metals were worthy of attention. While supply and demand still influence gold and silver prices, that is only one factors influencing gold bullion and silver bullion prices.
Since silver mining efforts launched in 3000 BC and gold maps were produced in 1320 B.C., the precious metals have been highly coveted. Overtime, the metals grew in value and various governments and entities introduced paper currency issued as certificates for gold and silver. That forever, linked paper to the precious metals.
At times gold and silver prices helped make paper money more valuable. However, derivative markets caused gold and silver prices to skyrocket and devalue the printed currency. That imbalance launched the practice of Gold Fixing in London (September 1919).
The Gold Standard and Gold and Silver Prices
When gold coins and silver coins were replaced by paper currency, the weight of the metals determine currency value. That practice converted gold weight into a cash value and the gold standard was born. In the 1930s the United States government established that each US dollar equaled a troy ounce of gold. By 1934, dollar values declined and gold prices and silver prices increased.
Because of that relationship, gold and silver prices grew for decades; each time, paper money became less valuable. That changed in the 1960s when US and European banks worked together to manipulate the market and protected value of paper currency. Fixed pricing was introduced in 1968 and is still currently used to help determine gold and silver prices daily.
Current Gold and Silver Prices
That system helped gold and silver prices rise to the current highs. While silver prices have neared $50 per 1 oz silver, gold prices have hit $1,900 per 1 oz gold. Since gold and silver are still valuable, industry experts believe that as time progresses, gold and silver prices will continue to rise.