I just have to say, I got huge deja vu earlier this year when all the “buy gold, it’s such a good investment” ads hit CNN. It took me right back to the early ’80’s, which was the last time I saw a media-led gold buying frenzy. This was about the time that gold had hit $1000/ounce. Shortly thereafter, when Volcker had wrung the larger portion of price inflation out of the economy, the price of gold plummeted.
Wish I had been a bit more diligent in the Clinton years, when it was sub-$300 during the .com boom. Yow! That was the time to buy gold!
So when I saw these kinds of ads pop up again this year, I thought to myself, “hmmm, ‘they’ (the big players) must be thinking gold’s at a top and want to offload it onto as many suckers as they can.”
FWIW, when I crunch the gov’s CPI data on that $1000/oz over the intervening years, I come up with a figure of $2369/oz equivalent to today’s buying dollars.
