Is Gold Repeating History? Lessons from the 1970s Bull Market and the 21-Year Bear Run.

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Understanding Gold’s Rise and Fall from 1980 to 2001

Gold soared during the 1970s—a time of rampant inflation, oil shocks, and geopolitical tension. Investors sought safety in the yellow metal as fiat currencies lost purchasing power. But by 1980, that narrative shifted dramatically.

Gold’s Peak in a Time of Crisis

The late 1970s were defined by economic malaise: stagflation, energy crises, and uncertainty surrounding the Cold War. In this environment, gold surged as a hedge against turmoil, peaking at over $800/oz in 1980 (equivalent to over $2,000 today, depending on how inflation is calculated).

The Great Decline: 1980–2001

The 1980s and 1990s brought relative peace and strong economic growth. Fed Chairman Paul Volcker aggressively hiked interest rates to tame inflation. As inflation cooled and economic confidence returned, gold lost its luster. The 90s were especially prosperous—arguably the most optimistic period in recent U.S. history. With no major prolonged crises, investors turned to booming equities, not precious metals.

Suppression or Just Sentiment?

There’s ongoing debate about whether gold’s price was “suppressed” by governments or simply neglected due to changing investor behavior. Declassified documents and the emergence of futures markets raise questions about deliberate price dampening. Still, many argue the main factor was shifting sentiment amid a booming global economy and stronger U.S. dollar.

The Final Blow: Central Bank Sales

In the 90s, many central banks began selling their gold reserves, seeing them as non-performing assets. The UK’s infamous gold sales under Gordon Brown and similar moves elsewhere further pressured prices. These actions not only reduced demand but also sent negative signals to the market.

Why Gold Might Be Entering Another Long-Term Bull Phase

With the benefit of hindsight, we see that gold tends to thrive in uncertain, inflationary, or crisis-prone times—and struggles when confidence in fiat systems is strong. Today, many believe we’re back in a prolonged crisis cycle.

A New Era of Turbulence

Since 2000, a barrage of crises—dot-com bust, 9/11, endless wars, the 2008 housing crash, and COVID—has driven gold repeatedly higher. Even when prices moved sideways, they stayed elevated during global uncertainty. Now, with global de-dollarization, soaring debt, and increasing geopolitical conflict, many see gold reasserting itself as a trusted store of value.

Gold vs. Fiat: De-Dollarization and Global Shifts

Emerging trends like de-dollarization, central bank gold accumulation, and discussions about gold-backed bonds suggest a major shift. If fiat trust continues to erode, especially with the U.S. printing to service its own debt, gold may return to its historical role as the backbone of monetary systems.


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