Through 1978 the US dollar fell sharply on foreign exchange markets as inflation accelerated and confidence in American policy ebbed. The Carter administration was forced to mount an emergency dollar-rescue package late in the year. For gold, a falling dollar and rising inflation were rocket fuel: the price climbed strongly, building momentum for the near-vertical ascent of 1979 and the blow-off 1980 top.
Gold Price History · The Free-Float Era
1978
The Dollar Crisis
A collapsing dollar and resurgent inflation drove gold higher, setting up the decade’s climactic surge.
- Average price
- $193/oz
- In 2025 dollars
- $954/oz
- Change on the year
- +30.8%
- After inflation
- +21.6%
1978 in context · real value, 1958–1998
What would $10,000 of gold in 1978 be worth today?
Run the numbers across gold, stocks, housing, and bonds — adjusted for inflation.
Calculate 1978 →How gold did in 1978
Value at year-end of $10,000 invested on 1 January 1978.
Gold $13,081 +30.8%
S&P 500 (total return) $10,651 +6.5%
US housing $11,380 +13.8%
Inflation (CPI) $10,759 +7.6%
Annual-average basis. Gold: Officer & Williamson; S&P 500 & Treasuries: Damodaran (NYU); housing: Shiller; CPI: BLS. Methodology →
Related years
Sources. Gold price: Officer & Williamson, The Price of Gold, 1257–Present (annual average); inflation adjustment by US CPI (BLS / Officer & Williamson). Asset comparison from the calculator dataset. Figures are annual averages. Full methodology →