Gold near 560 and more to come

I have enclosed a post below from Bill Cara’s website and I have not had the time to authenticate the facts. It still makes for some good reading though.

Bill,

You lived it, but here’s an article for readers to learn a little about the 70’s gold bull market:

http://www.buyandhold.com/bh/en/education/history/2005/gold_rush.html

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:http://minneapolisfed.org/Research/data/us/calc/index.cfmand 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!