Gold trading became legal for Americans in January of 1975, yet the rush for gold investment expected by analysts did not materialize that year or the next. The price of gold, $ 200 an ounce in 1975, plummeted to just over half that in August 1976. Since then gold has seen a steady rise in price and investment capped by dramatic increases in the last eight months. Continued growth in commodity uses plus rising costs for new gold provide a floor on which monetary investment influences are based. The real price of gold is expected to outpace inflation. Why was investor interest so long in coming?
- © 1979 The Regents of the University of California