Gold prices have been volatile this summer as the yellow metal hit 5-year lows in July and early August. And the question on some investors’ minds was, “When will it stop?”
The last 10 years has seen enormous gains in gold value, particularly between 2005 and 2011. Now, on the downward slump of those increases, analysts look to the past for clues on where gold will ultimately land.
Bloomberg recently revisited the 1980 gold spike and found some parallels between gold prices then and now. However, not all the similarities were seen with relief. According to Bloomberg:
For lovers of the precious metal, the hope is that the similarity between the two charts ends fairly soon.
At the end of the 1980s period of price volatility, gold entered a two-decade long era of relatively subdued price movement . . . A repeat of that trend would leave gold at around $1,000 an ounce in 2035.