gold crash timeline, page-2

Peter Schiff has responded to this school of thought well. I remember hearing this in one of his blog entries this year and thinking "I can't wait for it correct significantly, because that will be after it has its huge run". That last paragraph sums it up best!

Taken from http://survivalandprosperity.com/2011/01/27/rogers-soros-faber-russell-schiff-aden-sisters-schultz-on-gold/:

Schiff said:
"You go back to the 1970s. The price of gold went from $35 an ounce at the beginning of the decade to 800 at the end. A twenty-three fold increase. Now, 800 clearly was overvalued. And it did collapse. Gold prices dropped from 800 back- they settled into a range between 3 and 500 for about the next 20 years. So let's call the average price after gold hit 800 350. It did go above 500 briefly, it went below 300 briefly, but most of the time it was about 350. So if you bought gold at $35, even after the bubble burst, it was still 10X where the bull market started.

But where are we now? Gold is about 1,350. The bull market started at 250. If we have a repeat of the 1970s, this market will top out around 6,000- 5,700 to 6,000- then gold will eventually fall and settle back down at around 2,500 and ounce- which is still more than twice the current price. And I believe, that the economic fundamentals are so much worse for the U.S. economy, and we're going to debase the U.S. dollar by a much larger amount than we did in the 1970s, that we can have an even more spectacular rise in the price of gold. And yes, there's no doubt in my mind that eventually, the rise in the price of gold will attract speculative money, and it will eventually overshoot, and then we'll have a substantial drop.

But as far as I'm concerned, we are nowhere near that point yet, and the fact that so many people are so worried about it, and warning individual investors to stay away, this is a big sign that you keep buying, and I take comfort in the fact that the people who were so clueless, are so sure about the one thing, and that's that gold's a bubble that is about to burst."