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"Since the start of 2006, rises in the gold price have been spookily similar to the Dow’s run up to 1928. Charts of gold soaring also look remarkably like the build-up to the 2008 oil price bubble. And the dotcom boom. Not only that: thanks to the record highs set by gold this month, the price has risen just under four-and-a-half times in the past decade, identical to the rise in the inflation-infested years to May 1978, with very similar recent performance."
"The comparisons above mostly had the euphoria still to come. The Dow jumped another 78 per cent before its collapse. The Nasdaq rose another 213 per cent. Oil was closest to its peak, carrying on up only another 16 per cent. In perhaps the most supportive case for those keen to stock up on shiny metal, from May 1978 to its peak in January 1980 gold soared another 366 per cent, quadrupling the money of buyers."
"History provides another lesson, too, although it is rarely learnt. Once an investment idea penetrates the popular consciousness, it is close to peaking. Dotcom IPOs may be the most recent example, but the Dow in 1929 brought the most memorable anecdote (attributed to both Joseph Kennedy and songwriter Alec Wilder): when you hear bellboys giving stock tips in the elevators, it is time to sell."
"Since the start of 2006, rises in the gold price have been spookily similar to the Dow’s run up to 1928. Charts of gold soaring also look remarkably like the build-up to the 2008 oil price bubble. And the dotcom boom. Not only that: thanks to the record highs set by gold this month, the price has risen just under four-and-a-half times in the past decade, identical to the rise in the inflation-infested years to May 1978, with very similar recent performance."
"The comparisons above mostly had the euphoria still to come. The Dow jumped another 78 per cent before its collapse. The Nasdaq rose another 213 per cent. Oil was closest to its peak, carrying on up only another 16 per cent. In perhaps the most supportive case for those keen to stock up on shiny metal, from May 1978 to its peak in January 1980 gold soared another 366 per cent, quadrupling the money of buyers."
"History provides another lesson, too, although it is rarely learnt. Once an investment idea penetrates the popular consciousness, it is close to peaking. Dotcom IPOs may be the most recent example, but the Dow in 1929 brought the most memorable anecdote (attributed to both Joseph Kennedy and songwriter Alec Wilder): when you hear bellboys giving stock tips in the elevators, it is time to sell."
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