The oil pressure went from 30 to 60 to 5 within a minute or 2. Then later on it would start at 30 then go down to 5 until the motor died.
I'll echo a few comments on here, and give you my advice...
Sid, a few comments back said over 60 is bad. Stone cold, for a few minutes, 60 is OK. He's right though, you hold that on a Gen1 SB, you'll start wearing bearings. Cold, with decent tolerances, on 10/30, 40-60PSI for startup is good.
Warm? Idle? Over 5psi. GM's idiot lights turned on around 3. The better indicator is if it snaps up quickly when you hit the gas. That's the key. I had a 355 in my Impala for a few seasons while I was hunting down some rare 409 parts at the time (they're more avaliable now), and she'd idle sub-10, but pull that magical (and mentioned) 10 psi per thousand all day. Sold it to a friend, and it's been running fine for years, other than the pretty regular SBC oil leaks.
Regarding the factory gauge, yes. 80s electric gauges are pretty terrible. I'll give you a personal story. When I did my LS Swap, hit the key, fired up, and I had oil pressure. Good pressure. When she warmed up, hit the 30/35 PSI range, it began bouncing like crazy. 5 to 50 PSI range, faster than you could see. Of course killed the motor, and thought of the million ways I screwed up putting a motor together I've assembled a hundred times, but somehow broke on my own car....
Know what it was? There's a copper pad on the gauge that the needle "floats" on, after 40 years, it floated around there forever. Wore the traces off. I verified with an auto meter mechanical gauge that pressure was steady, checked resistance off the sending unit that it was constant, and the gauge was at fault. Next time the dash is apart, I'll replace that gauge, and move on... I just ignore it now.
If you're truly worried, get a mechanical. Run it parallel for a bit until you're comfortable the "range" is OK. Then unplug it, and sleep well...