GOLDBUGS AMEX Goldbugs Index (GOLD)

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One thing that should be noted is that gold has held about 450 dollar median price since 1492 in Constant Dollars. In CD's it has been as high as 2400 dollars (just post 1492). In times of really high supply, gold goes up in price, not down. This is because its oversupply causes monetary inflation! Tricky stuff.

Twice in this century is has hit all-time (500 year) lows for gold price in CD's. It longest low price period was about 30 years in England during the 17th century. Near gold's second longest comparable low price period was post 1980 where is went on a 20 year price slide with a minor comeback in mid 1990's Gold maintained a relatively median values sub 400 dollars. Strangely enough this period was also inflationary with high interest rates, but just post an even stronger inflationary period or relatively low rates in the 1970's. Soaring oil prices sent the cost of living through the roof, so that salaries just about tripled during that period. The depegging of gold allowed the wild price increase just prior to double digit interest rates taking effect.

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