Gold Rush 1970's Style
SeatedCoin
Posts: 1,040
Inflation adjusted we would have to hit $2,000+per ounce for gold to reach the 1980 price of $850 per ounce.
21st Century Gold Rush Revisited
"Back in late 1979, the lineups to buy Gold looked more like lineups of people waiting to buy Stanley Cup Hockey tickets at the then Famous Montreal Forum. There they stood all wrapped up in their parkas, ski jackets, and bulky sweaters wearing anything from construction boots to overshoes; there was even a sprinkling of executives in their Italian leather shoes, business suits and cashmere coats, all waiting to get in on a sure thing. The analysts and economists cited a litany of reasons to explain the Gold rush, but nobody cared. Gold prices were said to have become a barometer of political and economic fears, but in the end it was just pure GREED that drove the price until it finally peaked in January 1980 at $875 an ounce, almost on the very day that Americans were finally allowed to buy and own Gold bullion; the day that the big surge of American buying was to drive Gold to $5,000. This was yet another example of 'The Obvious is Obviously Wrong", the expected mad rush of Americans lining up to buy Gold had already been discounted in the price. Tell me something that everybody doesn't already know; that's when you will have something of value on which to act upon. The only important factor was simply that prices were skyrocketing. Anybody who was already in was making money (of course not as much as they claimed) and everyone else was afraid of being left out in the cold.
Gold was selling for $250 when 1979 began. By December, amazed at the sudden surge above $700, Gold devotees began talking $1,000 plus, some were even trying to justify $5000 or even $10,000. The rocketing prices startled all the experts and frightened even those analysts who had forecast the precious metals boom, but none called for anything like this. For the first seven years of this Bull Market, the newspapers and magazines had ignored Gold; just as they are doing today. Then suddenly, in late 1979, front page newspaper headlines, reports and articles on Gold and Silver began to appear everywhere and not only in the financial newspapers, but in the Dailies and magazines as well. The time is approaching maybe sooner than you can imagine when the beginning of the newspaper articles on Gold and Currency start to hit the front pages. Rest assured that before this bull market in precious metals is over, there will be similar front page stories around the world and Kramer will be yelling booya booya at every one of the Gold stocks that will permeate his program.
Some examples were: Lion Mines - 1975 price $0.07 / 1980 price $380. YES, that's right it's not a misprint - you could have bought 10,000 shares of Lion Mines in 1975 for around $700 dollars and if you held on for the whole 5 years until January 1980, you could have netted a total profit of around $3,799,300. Not bad ey!!!!! A few others were Bankeno - 1975 price $1.25 / 1980 price $430. Steep Rock - 1975 price $0.93 / 1980 price $440, Mineral Resources - 1975 price $.60 / 1980 price $415. Azure Resources - 1975 price $0.05 / 1980 price $109. The majors also performed superbly well, but nothing compared to the juniors. WARNING: The juniors, although offering great potential, also contain much greater risk as most of them ended up falling back to zero. So be careful."
Take a look at this===> GoldSpring
It's been on a tear for the last month going up on extremely high volume almost every single day. They own property in the Comstock Lode area. 4 years ago it was selling for .80 a share. Recently they settled a lawsuit, hired a highly respected geologist, and they are supposed to start drilling shortly. I took a flyer on some. What the heck. I am hoping it will be another Lion Mines.
21st Century Gold Rush Revisited
"Back in late 1979, the lineups to buy Gold looked more like lineups of people waiting to buy Stanley Cup Hockey tickets at the then Famous Montreal Forum. There they stood all wrapped up in their parkas, ski jackets, and bulky sweaters wearing anything from construction boots to overshoes; there was even a sprinkling of executives in their Italian leather shoes, business suits and cashmere coats, all waiting to get in on a sure thing. The analysts and economists cited a litany of reasons to explain the Gold rush, but nobody cared. Gold prices were said to have become a barometer of political and economic fears, but in the end it was just pure GREED that drove the price until it finally peaked in January 1980 at $875 an ounce, almost on the very day that Americans were finally allowed to buy and own Gold bullion; the day that the big surge of American buying was to drive Gold to $5,000. This was yet another example of 'The Obvious is Obviously Wrong", the expected mad rush of Americans lining up to buy Gold had already been discounted in the price. Tell me something that everybody doesn't already know; that's when you will have something of value on which to act upon. The only important factor was simply that prices were skyrocketing. Anybody who was already in was making money (of course not as much as they claimed) and everyone else was afraid of being left out in the cold.
Gold was selling for $250 when 1979 began. By December, amazed at the sudden surge above $700, Gold devotees began talking $1,000 plus, some were even trying to justify $5000 or even $10,000. The rocketing prices startled all the experts and frightened even those analysts who had forecast the precious metals boom, but none called for anything like this. For the first seven years of this Bull Market, the newspapers and magazines had ignored Gold; just as they are doing today. Then suddenly, in late 1979, front page newspaper headlines, reports and articles on Gold and Silver began to appear everywhere and not only in the financial newspapers, but in the Dailies and magazines as well. The time is approaching maybe sooner than you can imagine when the beginning of the newspaper articles on Gold and Currency start to hit the front pages. Rest assured that before this bull market in precious metals is over, there will be similar front page stories around the world and Kramer will be yelling booya booya at every one of the Gold stocks that will permeate his program.
Some examples were: Lion Mines - 1975 price $0.07 / 1980 price $380. YES, that's right it's not a misprint - you could have bought 10,000 shares of Lion Mines in 1975 for around $700 dollars and if you held on for the whole 5 years until January 1980, you could have netted a total profit of around $3,799,300. Not bad ey!!!!! A few others were Bankeno - 1975 price $1.25 / 1980 price $430. Steep Rock - 1975 price $0.93 / 1980 price $440, Mineral Resources - 1975 price $.60 / 1980 price $415. Azure Resources - 1975 price $0.05 / 1980 price $109. The majors also performed superbly well, but nothing compared to the juniors. WARNING: The juniors, although offering great potential, also contain much greater risk as most of them ended up falling back to zero. So be careful."
Take a look at this===> GoldSpring
It's been on a tear for the last month going up on extremely high volume almost every single day. They own property in the Comstock Lode area. 4 years ago it was selling for .80 a share. Recently they settled a lawsuit, hired a highly respected geologist, and they are supposed to start drilling shortly. I took a flyer on some. What the heck. I am hoping it will be another Lion Mines.
"The answer was in the Patriots eyes. Gone were the swagger and c0ck sure smirks, replaced by downcast eyes and heads in hands. For his poise and leadership Eli Manning was named the game's MVP. The 2007 Giants were never perfect nor meant to be. They were fighters, scrappers....now they could be called something else, World Champions."
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I believe that the bubble is only beginning to form. Remember the recent bubbles in tech stocks, then real estate. Next is precious metals. There is so much money out there and too many people with money looking for the next thing. It won't be long and people will be scared of most other investment alternatives - precious metals will suddenly make sense.
It won't be long and precious metals will be the next "in" thing. I think we've got a couple of years before that happens, but we will all be looking at prices that will astound everyone and make today's prices look cheap.
I'm not sure what to make of GoldSpring. Certainly it is risky, but I'm thinking it might not hurt to buy a few $500 "lottery tickets." That is, buy $500 worth of a bunch of speculative penny stock mining firms and one of them might be a Lion Mines. Certainly, one would treat this just like a lottery ticket with money they don't expect to ever get back.
http://ProofCollection.Net
"The answer was in the Patriots eyes. Gone were the swagger and c0ck sure smirks, replaced by downcast eyes and heads in hands. For his poise and leadership Eli Manning was named the game's MVP. The 2007 Giants were never perfect nor meant to be. They were fighters, scrappers....now they could be called something else, World Champions."
http://ProofCollection.Net
"The answer was in the Patriots eyes. Gone were the swagger and c0ck sure smirks, replaced by downcast eyes and heads in hands. For his poise and leadership Eli Manning was named the game's MVP. The 2007 Giants were never perfect nor meant to be. They were fighters, scrappers....now they could be called something else, World Champions."
"The answer was in the Patriots eyes. Gone were the swagger and c0ck sure smirks, replaced by downcast eyes and heads in hands. For his poise and leadership Eli Manning was named the game's MVP. The 2007 Giants were never perfect nor meant to be. They were fighters, scrappers....now they could be called something else, World Champions."
Big difference in the $875 "record" gold price in 1980. Gold only went above $800 for two days in 1980. Hence it was a needle-like spike from a base built back around $400-$500. Today, we've spent weeks above $800 with no peak yet in sight.....and a fairly strong base in the $750 region. The market today is not late 1979 nor early 1980. We are somewhere in "1976-1978" right now.
Also note that we all know the experiences of the 1970's today.
Those that played in this market in 1970 were doing it for the first time. There was no previous historical information on what happens when a gold standard is junked. There will be major differences in how this one plays out because people will "think" they know the outcome based on how 1974-1980 worked out. Unfortunately derivatives, financial fraud, and 25 years of pure fiat will have their say as well. One similarity however is that in the 70's gold was released from a bogus fixed standard of $42/oz. In fact, gold had been held down to a bogus standard of $250-$300/oz just several years ago. As in 1970, it is unwinding now and heading back towards its inflation adjusted true value.
roadrunner
True also but I think the price of Silver is going way up, and also they could find Gold there as well as Sliver.
"The answer was in the Patriots eyes. Gone were the swagger and c0ck sure smirks, replaced by downcast eyes and heads in hands. For his poise and leadership Eli Manning was named the game's MVP. The 2007 Giants were never perfect nor meant to be. They were fighters, scrappers....now they could be called something else, World Champions."
"The answer was in the Patriots eyes. Gone were the swagger and c0ck sure smirks, replaced by downcast eyes and heads in hands. For his poise and leadership Eli Manning was named the game's MVP. The 2007 Giants were never perfect nor meant to be. They were fighters, scrappers....now they could be called something else, World Champions."
that you should buy before it is too late.
i forget the name of this type of spam email.. but i could not get past
the similarities.
interesting post though. i enjoy reading about gold topics.