Precious Metals
Seven Events That Shaped a Century of Gold Prices
IN TODAY'S MONEY, AN OUNCE IS WORTH ALMOST FIVE TIMES WHAT IT WAS IN 1934.
October 26, 2026
1 min
Precious Metals
The following content is sponsored by Galiano Gold
Key takeaways
Above 1980 After Inflation: Adjusted with US consumer prices, 1980's peak equals about $2,920 today, below September's $4,319.
Record Margins for Miners: Producers earned a record average margin of US$3,076 an ounce over their all-in costs in Q1 2026.
Record Quarter for Gold ETFs: Gold funds took in a record US$31 billion in the third quarter of 2026.
In 1934, the US government raised the official price of gold from $20.67 to $35 an ounce. In September 2026, the market price averaged $4,319.
Measured in today’s money, gold has done more than keep up with rising prices. An ounce is now worth almost five times what it was when the price was raised to $35 in 1934, and more than at the famous 1980 peak. For the companies that mine it, that has meant record margins.
What $35 Was Really Worth
While the price stayed fixed at $35, the prices Americans paid for everyday goods and services roughly tripled between 1934 and 1971, according to the Bureau of Labor Statistics.
So each year the same ounce bought less. In today’s money, $35 was worth about $890 in 1934 and only about $290 by 1971. Once the market took over in 1971, that changed quickly: by January 1980, the monthly average had reached $675.
The 1980 Peak, in Today's Money
A dollar in 1980 bought far more than a dollar does now. Adjusted with the US consumer price index, the $675 average of January 1980 equals about $2,920 in today's dollars.
September's average of $4,319 is about 48% higher than that. The 2011 peak did not reach the 1980 level after inflation. September 2011 averaged $1,772, which equals about $2,630 today.
Miners Are Earning Record Margins
The average cost of producing an ounce of gold, including sustaining capital, was US$1,785 in the first quarter of 2026, according to the World Gold Council. Costs rose 16% from a year earlier, but prices rose faster, lifting the average margin to a record US$3,076 an ounce.
The council notes that miners have kept stricter cost and capital discipline than in earlier booms, and are returning cash to shareholders through dividends and buybacks. Output is rising too: mine production reached 966 tonnes in the second quarter, the highest second quarter in the council's data, which goes back to 2000.
Who Is Buying Now: Funds and Central Banks
Two markers on the chart, 2004 and 2022-26, point to buyers that are still active today. The 2004 marker is SPDR Gold Shares, launched in November 2004, which now holds about US$140 billion in assets. Gold ETFs worldwide took in a record US$31 billion in the third quarter of 2026, and kept buying through a September price dip that the World Gold Council links mainly to rising bond yields and a stronger US dollar.
The 2022-26 marker is central bank buying, which our October 5 article covered in detail. It has continued: central banks reported net purchases of 39 tonnes in August, led by China.
Sponsored by:
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As a Canadian gold producer, Galiano is committed to responsible mining and sustainable value creation while contributing to Ghana's economic development through local employment, procurement, and community investment.
Learn more at www.galianogold.com.
MiningVisuals Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Always conduct your own research.
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