January 13, 2006
Gold near 560 and more to come
You lived it, but here's an article for readers to learn a little about the 70's gold bull market:
A couple of snipets:
Here are some random figures and opinion from the New York Times, 1/1/80:
Shares in Hecla Mining, which traded earlier in 1979 at $5 ¼, finished the year at $46. "
At Christmas 1979, Johannesburg analysts were advising clients to sell (gold) into strength. Last Thursday, bullion burst through $500 an ounce, more than double the $226 at the start of 1979."
The New York Times, Jan. 22, 1980:
"The price of gold soared as high as $875 an ounce yesterday before dropping back by $50 or more in late New York trading…
Plus; lots of Middle East issues.
So, I took the high price of $875 in 1980 and put it into the inflation calculator at:
and came up with a high in todays dollars of, drum roll please, $2066.44. That's my target, call me nuts.
So until the policies of the US government change, you will have to pry my core holdings from my cold, dead hands...
have a great weekend!