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<p>[QUOTE=&quot;fatima, post: 1363873, member: 22143&quot;]Gold has only been legal as an investment by Americans since 1971 and because the USD was pegged internationally to the $ at $35/ounce prior to that, its role was limited elsewhere.&nbsp;&nbsp; So this means that in terms of gold as an investment as it is being used today, this market has only existed 41 years.&nbsp;&nbsp; In this 41 year period there have been two bull markets for gold.&nbsp; The first started in the 1970s when gold was first legal to own again and the artificial peg was removed.&nbsp; It shot up quickly as people looked to escape Nixon&#039;s horrendous wage &amp; price controls, two oil shocks, &amp; inflation.&nbsp;&nbsp; That bubble was popped when the Federal Reserve, very responsibly popped that bubble by raising interest rates ultimately to 20%.&nbsp;&nbsp; </p><p><br /></p><p>The 2nd, and only other gold bull market, is the one we are in now.&nbsp;&nbsp; I don&#039;t think the reasons for this market have anything to do with the first as it has to be obvious the economy of today is much different than that of the 70s.&nbsp;&nbsp; Namely we moved from a production economy (wealth creation) to a consumption economy (wealth destruction).&nbsp; &nbsp; So there is no precedent from the past that is a reflection of what we are seeing now.&nbsp;&nbsp; This means that the ONLY way for anyone to say when this bull market might end, is to fully understand why it exists now.&nbsp; The past is no guide.&nbsp;&nbsp; Conclusion.&nbsp; IMO, there is absolutely no reason to believe it might last another decade or longer because the conditions that created it are still with us and getting worse.[/QUOTE]</p><p><br /></p>

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