In the last thirty years of the last century, gold’s popularity peaked in 1980 — precisely as it bubbled over an all-time high. Interest rates were near an all-time high. Inflation was raging in the double digits. A recession was months away. It was the “perfect case for gold” according to many. And yet what followed was a slow-motion, two-decade long crash in gold. It wouldn’t see $675 an ounce again until 2005 — 25 years later.
Gold’s Recent Decade-Long Run
Odds are, you’ve seen and heard a ton of advertisements for and news articles about gold over the past few years. Starting in mid-2001, gold has grossly out-performed the broad stock market indices, increasing four-fold versus the S&P 500′s 0% return.