How Gold Moved Historically W/ Stocks, Bonds & Prime Rate

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Author	Replies: 4 / Views: 2,068
mdpmedia Pillar of the Community United States 3546 Posts	Posted 04/16/2015 06:41 am Someone asked in another thread, Quote: gold...likely to appreciate at a rate comparable to the stock market The following narrative is my personal observation: Historically, gold values have been all over the scale in terms of price but some generalities do sometimes present themselves. I am opining only w/r/t 'any' gold coin lacking any value-added variety or error properties: pretty much bullion pricing. In the early 80s, for example, when the prime interest rate was around 18% and just beginning its unprecedented decent from such lofty levels, stocks took off tremendously. Let's just take a peek at a small period in time from 1980 to 1999 as an example. In Jan of 1980 gold reached a record high of $850 per ounce with the prime interest rate around 20% and the S & P 500 at about 100. Some of the factors that supported this elevated gold price were: a) the fear and uncertainly stemming from the Iranian revolution, b) the country of Afghanistan being infiltrated by the USSR, c) the presence of exorbitantly strong oil prices causing inflation to spike, cont... Report this Post to the Staff

mdpmedia Pillar of the Community United States 3546 Posts	Posted 04/16/2015 06:43 am Then comes 1999 with gold descending to an extreme low of $ 251 per ounce along with the prime interest rate at around 8% and the S & P 500 hovering around 1300. Just a few of the ambient factors that fashioned these conditions at that time were: a) mining companies dumping gold to lock in prices gains in a falling gold market, b) central banks lowering their bullion reserves c) stock investors obtaining much better returns compared to gold and also compared to bonds that had pretty much exhausted the benefits of increased valuations resulting from significantly declined interest rates. cont... Report this Post to the Staff
mdpmedia Pillar of the Community United States 3546 Posts	Posted 04/16/2015 06:45 am Finally, I feel that putting all of these gold trends in a graphic format will better relay visually how they interact with the stock market and other intertwined factors etc.: Report this Post to the Staff
paxbrit Pillar of the Community United States 992 Posts	Posted 04/16/2015 1:54 pm Good post. The world is wealthy and the money is chasing all kinds of investments, from stocks and bonds to gold and Pez dispensers. One correction : Russia did not 'infiltrate' Afghanistan in 1979, they invaded, overnight, with several divisions of troops. Report this Post to the Staff
trade0200 New Member United States 6 Posts	Posted 05/13/2015 03:23 am Gold prices peak at $730 an ounce with investors pouring money into commodities on a weak dollar, firm oil prices and political tensions over Iran's nuclear ambitions. Report this Post to the Staff
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