Today’s Chart of the Day compares gold’s gains to date in it’s current decade long bull market vs. historic bull markets of gold in the 1970′s, and the NASDAQ from 1988-2000.
Source: JSMineset
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/images/live/s_silv.gif)
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/images/live/s_gold.gif)
Ahhh, yes Good times, good times. Silver and gold rush to the stratosphere in 1980. Catching that rise was heady and everyone was talking about gold and silver. Not like today, when just a handful are talking about it. When you consider that 1970 to 1980 we saw, either disguised or just BS’ed by the government an inflation rate of 10% a year, this parabolic rise in physical metals was very easy to see and understand. Today we are only just beginning to feel the effects of inflation in food and fuel, lulled into slumber by the grand poohbah of B*** SH** Ben Bernanke that inflation is 3% or less. When inflation takes off and can’t be disguised by the gummint, we will see some serious reaction to inflation. The emperor’s clothes will be ripped from his back. No matter what TPTB do to try to suppress the price of phyzz the people will speak and race to PMs to protect their returns on any investment, ZIRP is killing the Average Joe and Jane,
And by the way, my “FORMER” brokerage Fidelity just announced the munificent return of .01% on my Cash MMA. Fidelity took $235,000,000 of income, stripped off $220,000,000 and returned to the shareholders at total of $15,000,000. I guess the drones and spidermonkeys at Fidelity needed 94% of the income to invest in junk money market investments in the likes of JPM, Societe Generale and Citi Bank.That takes some serious brainpower. LOL. I fear the worst on these investments since many are repos. See ya Fidelity, don’t the door hit you in the butt.
Charting various measures of the global and US fiat monetary base on top of that graphic would be darn interesting. I’ve seen various attempts in the past. It’s a little tricky given what one selects for money and what changes in computational methodology may have taken place for any given monetary aggregate. I wish I had more free time… I’d crank out the chart. But today, I’m spending most of the day having a new well installed on the farm.
By the way, given the explosive growth in monetary aggregates worldwide — especially in Japan and the US, and with the EU sure to catch up — even if gold were to follow the above hockey stick, it wouldn’t necessarily be in a bubble. We’d likely have a big correction, but not a collapse and waterfall decline typical of standard bubbles. Back in the 1980s, gold modestly over-shot the growth in monetary aggregates and thus, fell down quite a bit soon after the peak, further pushed down by the start of a new round of manipulation.
Yes, but what do we sell the gold and silver for at the top of this one? How many of us got out of Benny Bux to get into gold & silver so we could get more Benny Bux at a later date?
It’s possible that we’ll be back on a gold standard in such a way that the relative purchasing power will stay reasonably stable. Alternatively, if desired and should the situation deem wise it will probably be possible to identify good things to buy immediately upon changing some gold and silver into whatever is the currency of the day. Realestate by that time will likely be among the things to consider.
All the surrounding conditions extant in the 1980s that ‘supported’ a crash of PMs no longer exist. The parabola of currency-debt had just got started. An interest rate hike was still an option while savings was there to sustain the additional related costs. Savings is all gone now and the currency-debt is in full blown exponential co-generation, facing universal debt saturation that’s turning into s ‘way of life’. The banknote scheme party is over for governments and bankres and there’s no where else to go but back to hard money.
That means folks MUST accumulate physical copper, silver and gold as fast as possible to avoid destitution.