Emperor Augustus, who reigned in ancient Rome from 31 BC. C. In 14 AD, he set the gold price per ounce between 40 and 42 coins per pound. In other words, a pound of gold could produce 40 to 42 coins, which equates to a gold price per ounce. Interest rates are linked to inflation, so they have historically also been closely related to gold prices.
The next revaluation occurred in the period from 211 to 217 AD, during the reign of Marcus Aurelius Antoninus (Caracalla), who reduced the value to 50 coins per pound of gold, reducing the value of each coin and making gold worth more. In 1968, a two-tier price structure was established, and in 1975, the price of gold was allowed to fluctuate. 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. To illustrate, in 301 CE, a pound of gold was worth 50,000 denarii, which is another silver-based currency.
It is measured in troy ounces and the price of gold is generally indicated in terms of the cost of a troy ounce. 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. Inflation is declining, so cash-like investments don't have to offer such high interest rates, and fewer and fewer people are opting for gold as a stable store of value. The following chart shows the price of gold since 1968, with some notable events in the gold market.
When inflation rises, the value of the dollar falls and some investors flock to gold in the hope that it will serve as a stable store of value. From 284 to 305 AD, Diocletian further downgraded gold to 70 coins per pound initially, but coins were later issued at 60 coins per pound. After the stock market crash of 1929, many investors began to exchange paper money for its value in gold. Interactive chart of historical data on the real (inflation-adjusted) prices of gold per ounce since 1915.
