“A crisis is coming, I should buy gold.” We hear this a lot. History mostly backs it up, with one important catch. Here is what happened to the gold price during the big crises of the last fifty years.
When the news turns to war, inflation or trouble at the banks, a lot of people start thinking about gold. The logic is simple: gold is nobody’s debt, and its value does not depend on whether any particular bank survives.
But no two crises are alike. Below are four stories with real numbers, followed by the lessons experienced investors take from them.
01The 1970s: inflation and gold’s big leap
Until 15 August 1971 the US dollar was tied to gold: a troy ounce (31.1 grams) officially cost $35. That day President Nixon stopped exchanging dollars for gold. Within a few years the market was setting the gold price.
The decade that followed brought two oil crises and high inflation. Money lost value and gold went up. On 21 January 1980 an ounce reached $850, about 24 times its 1971 price.
There is another side to this story. Anyone who bought right at the peak waited almost 28 years to see that price again. Gold is a good hedge against inflation, but only if you think in years.
022008: first a fall, then records
In March 2008, as the US investment bank Bear Stearns was on the edge of collapse, gold stood at $1,011. In September Lehman Brothers went bankrupt and panic hit the markets. Many expected gold to shoot up. The opposite happened: on 24 October the price fell to $712.50, roughly 30% below its March level.
Why? When everything falls at once, investors need cash to cover losses and pay off debts. So they sell whatever can be sold quickly, gold included.
Once the panic eased, central banks pumped huge sums into the economy and gold started to climb. In September 2011 an ounce reached about $1,920, almost 2.7 times its autumn 2008 low.
032020: the pandemic and the first $2,000
In March 2020 the same script played out, only faster. In early March gold was approaching $1,700. When the pandemic crashed the markets, investors rushed into cash again, and on 16 March gold dropped to $1,457.
The dip did not last long. On 5 August gold closed above $2,000 for the first time in history, and in August it came close to $2,070. That is a rise of about 40% from the March low in less than five months.
04The lari’s fall: gold through a Georgian buyer’s eyes
For a buyer in Georgia, the most familiar crisis is the lari exchange rate. Gold is priced in dollars worldwide. So when the lari weakens, gold gets more expensive in lari, even if its dollar price stays the same.
The lari started to slide in November 2014. By January 2016 a dollar cost 2.47 lari, and the lari had lost about 40% against the dollar. On 27 March 2020, in the first weeks of the pandemic, the rate hit a record 3.48 lari per dollar.
| Dollar rate | Bar in dollars (example) | Same bar in lari |
|---|---|---|
| 2.00 ₾ | $1,000 | 2,000 ₾ |
| 2.50 ₾ | $1,000 | 2,500 ₾ |
| 3.00 ₾ | $1,000 | 3,000 ₾ |
The numbers only illustrate the principle: the dollar rose 25%, and gold in lari rose by the same 25%. Anyone who kept their savings only in lari saw them shrink in dollar terms.
052025–2026: records amid uncertainty
The last two years show how gold reacts to drawn-out uncertainty. In 2025 gold rose 64%, its biggest annual gain since 1979. In October an ounce passed $4,000 for the first time, and in January 2026 it passed $5,000. The all-time high, $5,589, was set on 28 January.
Several things pushed it up at once: trade wars and tariffs, geopolitical tension, heavy gold buying by central banks and lower interest rates in the US.
After a run like that, the price usually swings noticeably both ways. Today’s gold price on our page updates about every 10 seconds.
06What these stories teach
| Crisis | At the start | Later |
|---|---|---|
| 1970s, inflation | $35 (1971) | $850 (January 1980) |
| 2008, financial crisis | $1,011 → $712.50 (October) | ~$1,920 (September 2011) |
| 2020, pandemic | ~$1,700 → $1,457 (16 March) | ~$2,070 (August 2020) |
Prices per troy ounce, in US dollars.
- Gold can fall in the first days of a panic. That is exactly what happened in 2008 and 2020. Those who got scared and sold missed the rise that followed.
- Gold is insurance, not a quick profit. It works best over several years, and the price can swing a lot in between.
- Buying in parts brings peace of mind. Spread the amount over a few months and the fear of buying right at the top goes away. You end up with an average price.
- Physical gold is in your hands. A bar or a coin does not depend on whether a bank or a broker can pay.
- Small bars give you flexibility. In a crisis you may need only part of your savings. You can sell one of ten 10-gram bars, but you cannot split a 100-gram one.
- Do not put all your eggs in one basket. For many investors gold is one part of their savings, not all of it.
This article is for information only and is not investment advice. Past results do not promise the same in the future.
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07FAQ
Does gold always rise during a crisis?
Not always right away. In 2008 and 2020 gold fell in the first weeks of acute panic, because investors needed cash. A few months later it reached new highs in both cases.
Does gold protect against a falling lari?
Gold is priced in dollars, so when the lari weakens, gold becomes more expensive in lari. In that sense it reduces currency risk. But the world gold price moves too.
Should I buy before a crisis or once it has started?
Timing a crisis is almost impossible. That is why many people buy gold gradually, say once a month, and get an average price.
Which bar size is best for a crisis?
On a big bar each gram costs less, while small bars give flexibility: if needed you sell only part. Many people combine both.
What if I need to sell my gold?
Gold.ge buys back the bars and coins it sold. The price is based on the market price minus a margin. Keep your purchase receipt.
Gold for your savings
Browse bars and coins online or visit our stores: Galleria Tbilisi (2/4 Rustaveli Ave) and Radisson Blu Iveria. Paying online locks the price on the spot, and Keepz has no commission.
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