Rare Photo From 1978 Before Huge Gold Price Explosion

As we await the next bullish move for the monetary metals suppressed in their derivative COMEX complex with sophisticated London chicanery.

Now is the time to remind you of an era past and gone but not forgotten.

The date of this photo I ripped from Reddit the other day is January 9th, 1978.

The spot price of gold that day was $171.60 per troy ounce.

You can likely deduce that Gold Krugerrand coins and 50 Peso Mexican Onza gold coins were perhaps the savviest gold bullion buy that day at whatever bullion shop this was.

Spot silver was a meager $4.91 oz to begin the year 1978.

That day in this bullion shop looks like 100 oz silver bars at $500 fiat Fed Notes was the shrewdest acquisition.

Within about 2 years time, under severe stagflation, even with a corrupt CFTC, a crisis in fiat currency confidence produced a near 5X multiple in the spot gold price and an over 10X multiple for the spot price of silver.

The then gold-silver ratio ran from just below 40 into the teens. This time in gold silver ratio history, we are coming from heights closer to 80.

I named this week's SD Bullion Market Update as Our Past is Prelude, for real reasons.

You don't ramp your fiat monetary base like this without tremendous repercussions. We will all suffer from this one way or another. Bullion is going to account, in real value terms.

In a few minutes, I will show you further charts and data illustrating how our past is a mere prelude to what is coming.

Turning to potentially timing this upcoming manic phase for silver and gold likely ahead.

I call on the following three charts by an over 45 yr Comex trading vet Michael Oliver and his Momentum Structural Analysis newsletter. 

Here we are looking at month-end & 10-month rolling averages (red line) in silver versus gold. They do this to smooth out the noise of week-to-week volatility.

In bullion bull markets silver often outperforms gold, so we're looking to find the silver breakout points of the past to know perhaps how far we are from seeing it again. 

Here there were two clear breakout points, with a silver short face-ripping mania into early 1980.

Next, the bull runs into early 2011. Here we see two clear breakout points as silver consolidated in the teens for some time in 2010 before tripling in short order. 

Finally the run we are likely to get going not long from now. You can see the pandemic breakout as we ran to $30 oz in not much time from the $12 spot lows. We have been consolidating for 15 months since.

See the green circle over there on the far right?

Michael Oliver and his MSA firm are long silver, and also using call options for even more leverage for this coming silver run.

In the video embedded above, go listen to how Michael answered me in late 2018 when I asked him where he thought this was all going.

Now in the 2020s, for spot silver. The sideways coiling is now 15 months and counting. 

When will we run and blast through $30? 

The longer it takes the higher and more explosive the energy will be in my opinion.

Billionaire derivative trader Paul Tudor Jones argued this week the obvious for any of you out there trying to make ends meet

Fiat currency devaluation price inflation is the #1 threat to us all now.

In real terms, we're not paying record debt levels off nor most of the unsaved-for promises in real terms (hundreds to trillions). And under this fiat Federal Reserve inflationary regime, this decade into the next, bullion is poised to be precious in countless ways. 

Position yourselves prudently. Thank you for watching and visiting us here at SD Bullion.

And as always take yourselves and those you love.

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James Anderson
James Anderson
Senior Market Analyst & Content

A bullion buyer years before the 2008 Global Financial Crisis, James Anderson is a grounded precious metals researcher, content creator, and physical investment grade bullion professional. He has authored several Gold & Silver Guides and has been featured on the History Channel, Zero Hedge, Gold-Eagle, Silver Seek, Value Walk and many more. You can pick up Jame's most recent, comprehensive 200+ Page book here at SD Bullion.

Given that repressed commodity values are now near 100-year low level valuations versus large US stocks, James remains convinced investors and savers should buy and maintain a prudent physical bullion position now, before more unfunded promises debase away in the coming decades...