The Gold Price Reversal in the 80th Year of the Republic of China | Gold Has Increased 145 Times in 50 Years, Will It Continue in the Next 50 Years?

What was the scene of gold in 1991? At that time, gold prices hovered around $400, and few people seemed optimistic about it. But if you had bought gold in 1991 and held it until today, you would see that this investment experienced incredible ups and downs—from the sluggishness of 1991 to breaking through $5,100 per ounce in early 2026, gold has completed an epic turnaround. This is no coincidence but a full reflection of half a century of changes in monetary policy, geopolitical shifts, and central bank strategies.

From 1991 to 2026: How Gold Prices Rose from the Bottom to Historic Highs

To understand why gold went from mediocrity in 1991 to today’s brilliance, we need to go back to a pivotal moment in 1971. That year, U.S. President Nixon announced the suspension of dollar convertibility to gold, officially ending the Bretton Woods system. Gold was freed from its fixed price of $35 per ounce and began to be priced freely by the market. From that moment, gold transformed from a dollar-dependent asset into an independent one, planting the seeds for nearly 55 years of appreciation.

The numbers tell the story best: from 1971 to 1991, gold increased nearly 11-fold. But even more astonishing is that from 1991 to 2026—over 35 years—gold rose about 12 times. By the end of January 2026, gold surpassed $5,100 per ounce, with institutions optimistic about challenging $5,500–$6,000 by year’s end. This means that over the past 55 years since 1971, gold has appreciated over 145 times, with gains exceeding 150% in just the last two years since 2024.

Why was the growth after 1991 so remarkable? Simply put, in 1991, the global economy was relatively stable, the dollar’s credit system was functioning well, and gold’s safe-haven appeal was limited. But everything changed afterward: the dot-com bubble in 2001, the 2008 financial crisis, QE measures during COVID-19 in 2020, the Russia-Ukraine war in 2022, and the Israel-Palestine conflict in 2023—each crisis boosted gold’s influence.

The Rise and Fall of Three Gold Bull Markets: The Eternal Cycle of Credit Crises and Monetary Easing

Gold prices don’t rise steadily; they go through three clear bull market cycles, with 1991 falling right in the middle of the second.

First Bull Market (1971–1980): From $35 to $850, a 24-fold increase in just 9 years. This was the panic buying after the collapse of the gold standard, as people lost confidence in the dollar after the detachment, compounded by oil crises and the Iranian Revolution. Gold became the best safe haven. It wasn’t until 1980, when the Fed aggressively raised interest rates over 20%, and inflation was tamed, that gold plummeted 80%.

Second Bull Market (2001–2011): From a low of $250 to $1,921 in September 2011, a 700% increase over 10 years. 1991 was the accumulation phase of this cycle, with gold trading sideways between $200–$300 for nearly 20 years. The real breakout came after 9/11, with the U.S. launching the global war on terror, followed by QE, and the housing bubble burst leading to the 2008 financial crisis. The U.S. resumed QE to rescue the economy, and gold rose along with the European debt crisis. It wasn’t until 2011, when the Fed ended QE, that gold entered an 8-year bear market, dropping over 45%.

Third Bull Market (2019–present): From a low of $1,200, gold has surged past $5,000 by early 2026. Drivers include de-dollarization trends, massive QE in the U.S. since 2020, geopolitical risks from the Russia-Ukraine war, central banks increasing gold reserves, and a weakening dollar index. The 2024–2025 period has seen the most intense rally in gold’s history.

Common Genes of Bull Markets: Starting from Currency Confidence Crises

A clear pattern emerges from these three bull markets: each begins with a collapse in confidence in the dollar or systemic pressure. 1971’s end of the gold standard, 2001’s low-interest rescue, 2018’s dovish pivot and pandemic QE—all are examples.

Bull markets also unfold in three stages: slow accumulation at the start, crisis-driven acceleration in the middle, and speculative overheating at the end. On average, each cycle lasts 8–10 years, with gains of 7–24 times. The end of a bull market typically requires aggressive tightening to curb inflation—such as the 20% rate hikes in 1980 or the end of QE in 2011.

However, ending this current gold bull market will be much more difficult. The reason is simple: global government debt levels are extremely high, and central banks can no longer raise interest rates as sharply as in 1980. Traditional, clean tightening cycles may be hard to realize. Instead, gold may oscillate wildly within a high range for several years (“high-level consolidation”), and only when a new, more credible global monetary and credit system emerges will the true end be signaled. Only when confidence in the entire monetary system is restored will gold’s safe-haven shine truly fade in the long term.

The Real Face of Gold Investment: Not a Buy-and-Hold Asset, but a Swing Trader’s Tool

Honestly, whether gold is a good investment depends on what you compare it to and your time horizon.

From 1971 to 2025, gold appreciated about 120 times, while the Dow Jones Index rose from around 900 to over 46,000, a roughly 51-fold increase. At first glance, gold seems stronger, but this comparison hides a brutal fact: from 1991 to 2000, gold was stagnant, trading sideways between $200–$300. If you had invested then, you’d be stuck with a huge opportunity cost and no gains for a decade.

How many 20-year periods can you afford to wait for free?

Therefore, gold is a good investment tool, but it’s better suited for swing trading during market cycles rather than long-term holding. Bull markets are often driven by macro crises (inflation, geopolitics, monetary easing), while bear markets can last long and be sluggish. Catching the big trend or sharp dips can yield far higher returns than bonds or stocks.

The practical rule is simple: invest in stocks during economic growth, and allocate gold during recessions. A more prudent approach is to set asset ratios based on your risk profile and investment goals.

When the economy is strong, corporate profits rise, and stocks tend to perform well. Bonds, as fixed-income assets, are less favored, and gold, which yields no interest, also loses appeal. Conversely, during downturns, corporate profits fall, stocks decline, and gold’s value preservation and bonds’ fixed yields make them safe havens.

Market volatility is constant—examples like the Russia-Ukraine war, inflation, and rate hikes are perfect illustrations. Holding a diversified mix of stocks, bonds, and gold can effectively hedge risks and make your portfolio more resilient.

If an investor in 1991 understood this, they wouldn’t have given up during the gold slump, but instead increased their holdings during the 2008 crisis, ultimately enjoying a 145-fold appreciation by 2026. This is not luck but a deep understanding of market cycles.