Setting the Stage
1971 – 1976 and 2008 – 2014
We appear to be living through a period that has a nearly identical price trend that was seen in the period of 1968 through 1976. The price of gold was fixed at $35 in 1968, and when the gold standard was eliminated in 1971 it rose to a high of $195 on Dec 27, 1974, and then declined back down to $103 by late 1976. Most investors thought that gold was finished and would never recover from this price decline, but instead over the course of the next three years put out a spectacular performance of 900%, rising to $835 per ounce by 1980!