Gold Sentiment Sour Like 1976, 1999 Dream Buys

“To hoarders and speculators,” says Time magazine, “gold lately has had about as much luster as a rusty tin can.”

Rings true here in February 2013, but this clanging bell – entitled The Great Gold Bust, and drowned out as a signal to fill your boots only by the New York Times‘ infamous Who Needs Gold When We Have Greenspan? of May 1999 – was rung back in August 1976, right at the very nadir of a 50% pullback in the 1970s’ long bull market in gold.

 

Gold bars (Image credit: AFP via @daylife)

“In three chaotic days last week, gold fell $14 on the London market,” Timeexplained 37 years ago, noting gold’s plunge from $198 per ounce at the start of 1975. Gold’s new 31-month low of $105.50 an ounce “[was] a dismal figure for goldbugs,” the magazine went on, “who not long ago were forecasting prices of $300 or more.”
Of course, gold went on to gain 750% over the next three and a half years.

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