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 throughout the 1970s nothing and I mean nothing enjoyed the astronomical gains that precious metals delivered but like the song says baby you ain't seen nothing yet chapter 7 enormity squared the 70s in trying to think of an analogy for the performance of gold and silver in the 70s what comes to mind is a great asset race between stocks real estate gold and silver if those assets were horses which one should you have backed to get the maximum payoff let's bet one dollar on every asset when each asset is at its

lowest price of the decade and then we'll see what we would have collected when all four assets crossed the Finish Line in January 1980. gold began our race at 34.75 per ounce in January 1970 then ran all the way to its 873 dollar per ounce high on January 21st 1980. that gives an astonishing payoff for gold of 25 dollars and 12 cents per one dollar bet basically 25 to 1. Silver started at 1.27 and remained in the single digits for most of the decade before making its move late in 1979 during the home stretch of our great

asset race and boy did silver take off literally leaving the field in its dust and hitting the Finish Line at 52.50 every one dollar bet paid a whopping 41.27 profit a one hundred dollar bet would have returned more than four thousand dollars to give you a true sense of perspective on just how far ahead of the pack the Front Runners were this chart illustrates that real estate was just and also ran coming in a very very very distant third paying out just 2.29 on a one dollar bet but stocks were worse

from their low in 1974 until January 1980 the Dow came in a distant last paying out just 1.44 cents for each one dollar bet flogging a dead horse everyone loves stocks right now that in the 70s they were like flogging a dead horse the Dow bumped its head on one thousand points in 1966 and didn't decisively break through until 1982 an anguishing 16 years and 10 months for every dollar bet in 66 you still had only 1.82 but was it even the same buck in the second chart I've divided the Dow

Jones Industrial Average by the Consumer Price Index in other words it's adjusted for inflation the invisible crash even though the stock market's price remained relatively constant it lost 73 percent of its value yes 17 years after making a one dollar investment the value had dropped so much that you could only buy 27 cents worth of 1966 goods and services this is known as the invisible crash and it would take many decades before anyone would realize that it had even happened home Home on the Range

in January 1970 a new single-family median price home was 23 600 and gold was 35 dollars per ounce if you had sold a home then you would have been able to buy 674 ounces of gold with the proceeds by January 1980 the home that you sold almost tripled in price to sixty two thousand nine hundred dollars but over that same time period your 674 ounces of gold rose 25 times from twenty three thousand six hundred dollars to five hundred eighty eight thousand four hundred and two dollars you could then have sold your gold and

purchased nine comparable homes and have had more than twenty two thousand dollars left over to put in your pocket but if you had sold the same home in November of 1971 and bought silver by January 1980 your silver would buy 16 homes with almost fifty six thousand dollars left over for the cookie jar and almost 17 times gain in true wealth in just over eight years and that sure ain't hey the Winner's Circle throughout the 1970s nothing and I mean nothing enjoyed the astronomical gains that precious metals delivered but like

the song says baby you ain't seen nothing yet the powerful forces behind the great gold and silver Rush of the 21st century are gathering strength day by day so I've placed my bets on gold and silver to win the great asset race we just used as an example is real and it is happening again right now thanks for watching but this is by no means the whole story if you want the full story including my free online only chapters and companion videos there's a wealth of information at ggsr21.com thanks

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