Long term price trends

Since April 2001 the gold price has more than tripled in value against the US dollar,^[43] prompting speculation that this long secular bear market (or the Great Commodities Depression) has ended and a bull market has returned.^[44] In March 2008, the gold price increased above $1000,^[45] which in real terms is still well below the $850/oz. peak on January 21, 1980. Indexed for inflation, the 1980 high would equate to a price of around $2400 in 2007 US dollars.

In the last century, major economic crises (such as the Great Depression, World War II, the first and second oil crisis) lowered the Dow/Gold ratio (which is inherently inflation adjusted) substantially, in most cases to a value well below 4.^[46] During these difficult times, investors tried to preserve their assets by investing in precious metals, most notably gold and silver.