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GOLD
REACHES NEARLY $900 PER OZ . . .
Early in 1980 the GOLD price peaked out at nearly US$900/oz.Here is what the
media headlines were saying about gold and the economy at the time
Boston - 4th
January 1980
Propelling the gold rush of 1980 is an international mood that has shifted
from financial concern to political panic. "The world anxiety level has
just taken off," says Jeffrey A. Nichols, chief economist with
Argus Research Corporation, a New York financial advisory firm. The wealthy
and well-to-do, particularly in the Middle East but also elsewhere, have been
frightened by the events in Iran and Afgh... (695 words)
Washington - 4th
January 1980
At home and abroad, deep concerns about peace and war and about the future
supply and price of oil are distorting economic behaviour. Latest evidence is
the skyrocketing price of gold, as a relative handful of moneyed investors --
fleeing the uncertainty of paper currencies -- push the precious metal above
$600 an ounce. "Panic," international economist Lawrence B. Krause
said in a telephone interview, ... (595 words)
Hong Kong - 8th January 1980
The price of gold reached a world- record $680 an ounce on the Hong Kong
bullion market Monday in what dealers described as panic buying. The price of
the metal opened trading at $660 an ounce, $30 above its level here on
Saturday, and quickly soared upward in reaction to President Carter's weekend
announcement of a reduction in grain sales to the soviet Union and other
measures to retaliate against Soviet ... (83 words)
London - 15th
January 1980
The price of gold skyrocketed to $660 an ounce at the afternoon fixing in
London Monday, another record. The dollar was steady to slightly lower. The
latest gold-buying spree began in New York Friday afternoon. It was spurred
by Kuwait's announcement that it would trim its oil production 25 percent
April 1. The cutback was seen as a prelude to similar actions by other OPEC
nations. One dealer in Zurich, where gold prices were lower than London's,
but still high, attributed the... (96 words)
London - 17th
January 1980
The price of gold rose to a stunning new record of $765 an ounce Wednesday on
hectic European bullion markets before easing back as speculators took
profits. Besides general concern about world political tensions, two other
factors have been held responsible for the latest gold rush: concern over
Yugoslav President Tito's health and a remark by US Treasury Secretary G.
William Miller that the Treasury had no pl... (176 words)
13th February 1980
By Robert Edwards On Nov. 20 of last year this column stated, "The
solution for inflation is well known, but the cure could be worse than the
disease." Since then, a number of readers have asked about this
"cure." High labor costs, big government, oil price increases, and
other factors may be blamed for causing inflation. But these are symptoms,
not causes. Inflation results from too many dollars. Rather than an increase
in prices, inflation is the decreasing value of our money.
SYMPTONS ARE NOT CAUSES
Quite often on the surface all we can see are symptons but on deeper analysis
and looking past the sympton itself we can then identify the CAUSE!
THERE IS NO REMEMBRANCE
Sitting with my father after lunch with close family, I asked him what he
remembered about the investment world in the late 1970's & early
1980's.
He proceeded to explain how people were struggling to, or simply couldn't,
pay their mortgages because of rising interest rates. He went on, "In
1977-8, homes in South Australia had an average value of approximately
AU$60-70,000, then interest rates began to rise to levels of between 17% to
19%. This then lead to an increase of homes flooding the market place
dropping the prices of the average home to less than AU$30,000!! People who
were cashed up, invested heavily into Commodities and had no or limited debt
did well, did very very well he said! But unfortunately the majority were not
cashed up and had debts that exceeded far beyond their annual income".
He then went on to say, "the average Swiss portfolio held no less than
between 5% to 25% in Gold or Silver"!
IN ANCIENT TIMES
BEFORE US
Historians confirm that King Solomon was one of the wisest and richest men of
all time. Here are some of his writings from his own personal autobiography;
"That which has been is what will be, that which is done is what will be
done, and there is nothing new under the sun." "Is there anything
of which it may be said, "See, this is new"? It has already been in
ancient times before us." "There is no remembrance of former
things, nor will there be any remembrance of things that are to come by those
who will come after." King Solomon 931 B.C,
SUMMARY
It's interesting to note, King Solomon spoke about ancient times that were
before his time, yet to us, he made these comments nearly 3,000yrs ago!
That is in stark
reality with today, where many of our financial advisors in their very myopic
analysis, are lucky to reflect back 5 to 10 years, let alone to the late
1970's-80's. As Solomon said, "there is no remembrance of former
things".
Philip Judge
Anglo
Far-East Company
Also
by Philip Judge
Philip Judge is the 3rd generation of a family that has had
substantial involvement in the Precious Metals markets. He has researched,
written and spoken on the gold, silver and commodities markets for over a
decade. Philip works in the marketing and operations department of The
Anglo Far-East Bullion Company, an internationally based Bullion Banking,
Investment Management and Financial Services Company
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