The price of an ounce of gold remained completely stable and in line with the gold standard at all times. To determine the true value of gold in US dollars, simply take the total world money supply of the United States and divide it by the number of ounces of gold available for purchase. One of the main arguments I've heard against the measure is that the value of gold has fluctuated too much in the past to make it a reliable standard today. It is measured in troy ounces and the price of gold is generally indicated in terms of the cost of a troy ounce.
Part of what I was studying was the prospect of a gold standard for the US currency similar to that supported by Ron Paul and other Austrian economists. If you want to take a closer look at the dramatic rise in gold prices, see the chart below. A trend in the global economy seems to suggest that when people doubt the safety and value of paper money, they start buying gold. I have a one-ounce medal from the 1920s.
It says: Winners of the Texas League of the Fort Worth Baseball Club, champions of the postseason, league south, Little Rock. Since then, the price of gold has increased more frequently and, from 2002 to today, its price has more than quadrupled. Interactive chart with historical data on the real (inflation-adjusted) prices of gold per ounce up to 1915.The Chinese and Indian governments have started buying gold in large quantities, leading some to think that gold prices will skyrocket again. The true value of gold (in goods, not paper dollars) has been constant for literally thousands of years.
In 1968, a two-tier price structure was established, and in 1975, the price of gold was allowed to fluctuate.