by John Rubino
Dollar Collapse
The recent back-and-forth precious metals action has left a lot of people frustrated with both the metal and the “permabulls” in this space. Fair enough. Gold has almost doubled from its 2015 low, but it’s done so in a really boring way, which is the ultimate crime in the blow-off stage of a financial bubble when so many other things are going parabolic.
But history says that the real action is still to come. The following chart shows the past century’s gold bull markets, most of which* make the current bull market look like a virtual newborn.
*One gold bull market ended after matching today’s in both duration and appreciation. It ran from 1930 – the start of the Great Depression – to 1934 – the year in which FDR confiscated gold, made ownership of the metal illegal for individual Americans and then devalued the dollar versus gold. Unless all that happens again (possible but highly unlikely), that bull market isn’t a useful indicator.