Gold – Why It Shines Through History and Economic Turmoil

Gold has captivated human civilizations for thousands of years. From ancient temples and royal crowns to modern investments and central bank reserves, gold has held its value and allure like few other assets. And now, in April 2025, gold has made headlines again—surpassing $3,000 per ounce for the first time in history.

But why does gold continue to matter so much in a world of digital currencies, AI, and electric vehicles?

A Brief History of Gold

Gold’s journey as a symbol of wealth and power began as early as 3000 BCE in Mesopotamia and Egypt. It was used in jewelry, religious artifacts, and eventually as currency. The gold standard, adopted by major nations in the 19th century, linked currencies directly to gold reserves, giving money intrinsic value.

Even after the gold standard ended in the 20th century, gold retained its importance. Today, it’s not a currency, but it functions like one—a store of value, especially in times of uncertainty.

Why Does Gold Retain Its Value?

Scarcity Gold is rare, and mining it is expensive and difficult. According to the World Gold Council, all the gold ever mined would only fill about three Olympic swimming pools.
Durability Gold doesn’t rust, corrode, or tarnish. Ancient gold coins are still intact today.
Universal Acceptance Across time and geography, gold has been accepted as valuable. It transcends borders and governments.
Inflation Hedge Gold often rises in value when inflation eats away at fiat currency purchasing power. Investors see it as protection during turbulent times.

The Modern Gold Market

Gold is traded globally in markets like the London Bullion Market and COMEX (New York). It plays a key role in:

Jewelry (over 50% of demand)
Investments (ETFs, coins, bullion)
Central bank reserves
Industrial use, especially in electronics and medical tech

In 2024 and 2025, increased geopolitical tension, high inflation, and uncertain interest rate policy drove a surge in gold demand—culminating in April 2025’s historic $3,000 milestone.

Gold in Times of Crisis

Gold has a reputation as a "safe haven" asset. When economies struggle, gold typically becomes more attractive:

During the 2008 financial crisis, gold rose while stocks crashed.
In the COVID-19 pandemic, gold hit then-record highs in 2020.
In 2024–2025, amid banking instability, global debt concerns, and a shifting geopolitical landscape, gold soared once again.

Gold & Our Curriculum

Understanding gold’s role in the global economy is essential for students exploring macroeconomics, trade, and financial literacy. Our Global Finance & Economics curriculum includes real-time case studies, including how assets like gold respond to inflation, interest rates, and geopolitical events. It empowers learners to think critically about financial systems—past and present.

Learn More

Here are two great sources to explore:

World Gold Council Data, trends, and insights about gold: https://www.gold.org
U.S. Bureau of Economic Analysis (BEA) For broader economic context and gold’s role in national accounts: https://www.bea.gov

Final Thoughts

Gold isn’t just a shiny metal—it’s a symbol of economic trust, security, and resilience. As global events shake markets and challenge currencies, gold continues to serve a timeless role. Its recent rise past $3,000 isn’t just a number—it’s a signal.

👉 Explore our Economics curriculum to help your students understand how assets like gold fit into the bigger picture of economic systems and financial futures.