Lesson Plan: The Price of Gold — Inflation, Spot Price & Store of Value
- The Chairman
- Aug 5
- 3 min read
Grade Level: 9–12Subject: Financial Literacy / Economics Duration: 1 class period (45–60 minutes)Standards Alignment:Florida Financial Literacy Standards (Social Studies NGSSS – Economics)
SS.912.E.1.14 – Explain how the purchasing power of money is affected by inflation.
SS.912.E.2.3 – Describe how the prices of goods and services are determined by supply and demand.
SS.912.E.4.2 – Discuss the role of gold and other precious metals as a store of value and hedge against inflation.
SS.912.FL.2.4 – Explain how inflation affects the value of money and investments.
Learning Objectives
By the end of this lesson, students will be able to:
Define and explain spot price, inflation, and store of value.
Analyze how inflation has impacted the purchasing power of the U.S. dollar since 2003.
Interpret historical and current gold prices to assess its role as a store of value.
Explain how supply, demand, and market perception influence the spot price of gold.
Key Vocabulary
Spot Price
Inflation
Store of Value
Purchasing Power
Precious Metals
Supply and Demand
Fiat Currency
Engage (5–10 minutes)
Bell Ringer Question:
“If an ounce of gold cost $400 in 2003 and now costs $3,400 in 2025, is the gold more valuable — or is your dollar worth less?”
Ask students to write a brief response in their notebooks. Lead into a class discussion.
Explore (15–20 minutes)
Mini Lecture & Visual Aids
Use a visual graph (or interactive tool) showing gold’s price from 2003 to 2025. Explain:
Spot Price – The current market price at which gold can be bought/sold.
Inflation – The general increase in prices and fall in purchasing power over time.
Store of Value – An asset that maintains or increases value over time (gold vs. currency).
Discuss:
Why gold is considered a hedge against inflation.
How inflation erodes the value of savings if not invested.
How the supply/demand of gold, mining, and geopolitical tensions affect its spot price.
Explain & Apply (20 minutes)
Group Activity: Inflation Impact & Gold Comparison
Divide students into small groups. Provide a worksheet with:
2003 prices of items (e.g., loaf of bread: $1.00, gallon of gas: $1.50, college tuition: $4,000/year)
2025 prices of the same items
Gold price in 2003 ($400/oz) vs. 2025 ($3,400/oz)
Student Tasks:
Calculate the percent increase in prices and gold.
Determine how many loaves of bread or gallons of gas 1 ounce of gold could buy in 2003 vs. today.
Write a paragraph on whether gold preserved purchasing power better than the dollar.
Evaluate (10 minutes)
Exit Ticket – Short Answer Questions:
What is the current spot price of gold, and what does that mean?
How does inflation affect your money over time?
Why might someone choose to invest in gold?
Is gold a better store of value than U.S. dollars? Why or why not?
Assessment & Grading Rubric
Criteria | Excellent (4) | Good (3) | Fair (2) | Needs Improvement (1) |
Defines key terms accurately | ||||
Correctly analyzes gold price | ||||
Explains inflation concepts | ||||
Group activity participation | ||||
Exit ticket completion |
Materials Needed
Projector or smart board
Price of gold chart (2003–2025)
Inflation data handout
Student worksheets
Calculator or devices for online research
Extension / Homework (Optional)
Assignment: Research another commodity (e.g., silver, oil, or real estate) and analyze its price changes over the last 20 years. Write a one-page reflection comparing it to gold as a store of value.
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