John Budden Posted by John on June 26, 2013

I have had many humbling and defining invest moments over the years, and this is one of them. When I hit the quintessential puke point, you have a great contrary indicator.

Mark Twain said, “History never repeats itself but often it rhymes”

From $185.25 (US) in February 1975 to $103.50 (US) in August 1976, Gold bullion corrected by 44% before resuming its upward trend; eventually topping – out at $850 (US) an ounce in mid – January 1980.

“It’s deja vu all over again” – Yogi Berra

In August 2011, Gold bullion topped-out at $1900 (US) and by early this morning, June 26, 2013, Gold in London traded as low as about $1223 (US) representing a correction of 35.6%.

A 44% correction, like the one in the mid-1970’s, would take us down to $1064 (US) an ounce.

The debt, derivatives and money printing were tame in the mid -1970’s compared to today’s surreal global monetary debauchery. I am not smart enough to call the turn but I believe that Gold bullion will resume its uptrend, as it did in the latter half of the 1970’s, and it will rise to many multiples of where we are today, based on incontrovertible fundamentals.