Quote Originally Posted by Charles Mackay
Many cautious gold bulls are citing the 70's model/analogy where gold had a 50% correction after it's first leg up into '74. I don't think that holds water because that leg was a 6x multiple of the low. This leg up in gold is nowhere near that speculative and has been corrected nicely all the way up. .
Just posting a link showing difference in gold price trends between the 1970s and early 2000s. Indeed the gold bull in early 1970s was a lot crazier (faster and higher) than what we've got so far. See http://www.zealllc.com/2006/rgold2.htm then scroll down to the charts.