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Since entering this business in 1973, I have witnessed the end of the gold standard, the move of silver and gold to frothy peaks in 1980, the subsequent period of interest rate returns of 18% p.a., the crash of 1982, 1987, 1992, 2000, and 2008; the period between 1992 and 2002, when metals virtually did not move and the move from 2003 to present.
As I have celebrated my 60th birthday, I thought it would be interesting to take a retrospective on the markets, but more specifically to see what if anything has changed in the minds of metals buyers over this period.
This muse is not intended to develop a theory as to where metal prices are going, but is focused on the buyers perception, on not if they should buy, but what. The ‘what’ is determined almost entirely by personal psychology.
There are a few more vehicles available to today’s metals buyers that were not around in 1980, but a full 95% of products that are available in today’s market were accessible to the average buyer in 1980.
The doomsday prophets were abundant in 1980; in fact some are still around today. Their credo, buy metal, build a bunker, get six months of food and buy a gun.
The conspiracy group also existed. There are no metals there to back up your position. The market is being manipulated.
Government seizure of gold and moving your assets to another country were also popular themes in the 1980 era.
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