Taking the Bullion by the Horns

TAKING THE BULLION BY THE HORNS: $1895 A Modern History of THE GOLD MARKET $2000r $1500 $1000 2003 2002 2001 2000 294 199! 1990 I989 $500 A.) NIXON SHOCK (8/15/1971): AUG. 15, 1971, MARKED THE END OF THE BRETTON WOODS SYSTEM, WHICH ATTEMPTED TO MAKE THE U.S. DOLLAR "AS GOOD AS GOLD" BY ESTABLISHING A $35-PER-OUNCE EXCHANGE RATE. BY 1971, INFLATION SCARED HOLDERS AWAY FROM THE U.S. DOLLAR, AND PRESIDENT RICHARD NIXON SHUT DOWN DIRECT GOLD EXCHANGE. B.) GOODBYE BLACK GOLD (I/2 1/1980); EASILY THE MOST EYE CATCHING POINT ON THE TIME LINE, JANUARY 1980 SAW THE BIGGEST SPIKE IN GOLD PRICES IN 1979 OIL CRISIS RELATED TO THE IRANIAN REVOLUTION, AND HIGH INFLATION. IT RESULTED IN 20 YEARS OF BEAR MARKET PRICES. MODERN HISTORY. THE SPIKE WAS BROUGHT ON BY A NUMBER OF CAUSES, INCLUDING THE C.) BROWN's BOTTOM (8/25/1999): TOWARD THE END OF AUGUST 1999, GOLD PRICES HIT A LOW OF $251.70. THIS WAS ABOUT THE TIME THEN-CHANCELLOR OF THE EXCHEQUER GORDON BROWN AUCTIONED OFF HALF OF THE U.K.'s GOLD TO ESCAPE THE CURRENCY'S VOLATILITY. IT LOOKED GRIM AT THE TIME, BUT IN HINDSIGHT, IT HERALDED THE RISE OF A NEW BULL MARKET, WHICH OFFICIALLY BEGAN A COUPLE YEARS LATER. D.) BACK IN BUSINESS (I1/7/2007): THE PRICE OF GOLD FINALLY CLOSED IN ON ITS I980 HIGH IN NOVEMBER 2007, WHEN IT HIT $845.40. HOWEVER, GIVEN THE RATE OF INFLATION, THe 2007 MARK WAS NOT AS EXTREME. PRICES ROSE MORE STEADILY THIS TIME AROUND, AVOIDING THE EXTREME UPS AND DOWNS OF THE LATE '70s WHILE MAINTAINING AN UPWARD MOMENTUM. E.) BEAR HORIZON?: LIKE ANY INVESTMENT, GOLD CAN BE ON THE UNPREDICTABLE. IN 2011, GOLD PRICES ROSE ABOVE THE INFLATION ADJUSTED 1980 RANGE, MEANING PRICES ARE HIGHER THAN THEY'VE EVER BEEN. HOWEVER, 1O YEARS IN, THIS IS ABOUT THE TIME THE LAST BULL TURNED OVER. PEAK, WHICH THE U.S. GOVERNMENT ESTIMATES WOULD HAVE BEEN IN THE $1,50O USA GOLD, 2011 (HTTP://www.USAGOLD.COM/REFERENCE/PRICES/HISTORY. HTML) 24H GOLD PRICES & RESOURCES, 2011 (HTTP://GOLDRATEFORTODAY.ORG/EXPLAINING-GOLD-RATE/) LEARCAPITAL roonunac cnA m AMOS CONTENT OROUP THE PRECIOUS METAL LEADERS