Home > Uncategorized > The Stephen Colbert of Economics: Gold Edition

The Stephen Colbert of Economics: Gold Edition

September 26, 2012 Leave a comment Go to comments

I’m not sure if this technical analysis of gold prices with a target if $3000 is an actual publication, or just something meant for entertainment.

To further inform you about the value of gold, I have done a more comprehensive technical analysis. Here is all you need to know.

Record nominal price: $1889 in September 2011

Record real price: $850 in January 1980

Years needed to climb back to that nominal price of $850 again after 1980: 28

Inflation-adjusted value of that real price today: $2450+

Years needed to climb back to that real price of $2450 in today’s dollars again after 1980: haha, good one. Try some time after the collapse of the 5th American Empire.

Number of people telling you to buy gold in 2001, which would have earned you a return of 18.5% per year if you held it until today (or 21.4% if you sold in September 2011): -5

Peak loss in real value after 1980: Ok, I’m shutting down the calculator. Let’s just estimate an 80% loss from 1980 to 2001. Do a technical analysis on that!

One more hilarious chart for your entertainment: see this technical analysis from the 80s. I think they missed the bight (look it up) curve on the downside and the subcontinental drift.

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  1. Joe
    September 28, 2012 at 11:43 pm

    Amazing how you can share facts that demonstrate buying a non-investment asset is a money-stupid thing to do, and people will still pile their money into it. Kooky.

  2. September 29, 2012 at 4:11 am

    Makes me wish I was selling gold. I must own some kind of mining stock through the S&P/TSX index. Maybe I should start talking about how it’s a great investment…

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