Go back to the 1970s and the last precious metals boom. In the late 1970s gold prices rose eight-fold and silver by a factor of 25.
By: Peter J. Cooper
Fast forward to today and you have ArabianMoney editor Peter Cooper publishing a book predicting a rise in gold prices to $5,000 as the world goes through something like a re-run of the mid-70s.
Then as now a massive credit expansion produced a huge bust in property and then stock prices, and governments reflated to counter the downswing.
Inflation not deflation
Inflation resulted after the initial price deflation, although stock and real estate prices stayed low, and bond prices fell. Even gold prices took a nasty tumble in 1976 as they did in late 2008 but then came the spectacular 1979-80 blow-off in precious metal prices with gold at $850 and silver at $50 an ounce. Is that final spike about where we are today, only to far higher price levels?
Read More: Silver About To Break $20 and Looking Better Than Gold - SilverSeek.com
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