From an article written by Aubie Baltin in July 2005:-
I have focused on gold and silver stocks to see were they might be going in the next 3-5 years, by going back in time to the 1970's and to see what happened back then when gold first hit $500 then $600 then $700 and finally $850. I started my research by going to the library to look at newspapers from the 1970's, and WOW did I find some amazing things!! The Library that I went to had the Financial Post newspapers on microfilm all the way back to 1972, the very beginning of the last gold and silver Bull market. There were very few articles when gold moved from $31 in1972 to $200 by 1976, and hardly anybody noticed when Gold dropped back down to $100 in late 1976. The plethora of stories didn't even begin to get published until late 1978-79 and they didn't hit the front page until December 1979 into January of 1980 the final blow off top. The stock tables that I found was absolutely amazing.. In 1975 most gold and silver stocks were trading at under $2 and a lot were penny stocks under $0.50. Even with gold up 600% from the 1971 low of $32 to the 1975 top of $200 most gold and silver shares did little to make anyone wake up and take notice. I worked for Dominic & Dominic at the time and the President was one of the Biggest Gold Bulls who became famous for going to Japan to sell them Gold. I held a few seminars in an attempt to push Gold stocks as well as Bullion getting an order was like pulling teeth. It was not until gold retraced the first big sell-off back above $200 did the gold and silver stocks start there historic bull market that would end at un-imaginable prices.
Some examples were: Lion Mines - 1975 price $0.07 / 1980 price $380 YES that's right it's not a misprint you could of bought 10,000 shares of lion mines in 1975 for around $700 dollars and if you held on for the whole 5 years January 1980 you could have netted a total profit of around $3,799,300. Not bad hey!!!!! A few others were Bankeno - 1975 price $1.25 / 1980 price $430. Wharf Resources - 1975 price $0.40 / 1980 price $560. Steep Rock - 1975 price $.93 / 1980 price $440 Mineral Resources - 1975 price $.60 / 1980 price $415 . Azure Resources - 1975 price $0.05 / 1980 price $109.
No question about it, that was one of the biggest financial opportunities in history. I don't know of any other time in history, not even the dot.com bubble where in only a 5 year time span you could have turned so little money into so much wealth. "You only need to make one good investment decisions in your whole life to be super successful". I believe we are now at that same juncture as we were in 1976-78, but only this time the fundamentals are even better for gold and silver than they were back then. The similarities between the 1970s and today are uncanny. See if you can find a copy of James Dines prophetic classic "The Invisible Crash" known then as the "Gold Bugs Bible". The book is basically a documentary case study of the stock and gold markets of the 1960's to mid 1970's. The things that Mr. Dines wrote about back then could have easily been written last week or talked about on MSNBC yesterday. Here are a few quotesA full-fledged panic away from paper money could start at any moment". Or how about this nice quote. "When people see gold and silver standing alone amidst the economic ruins, they will realize that we gloom and doomers were actually right". "Hopefully, eternal optimists will pay more heed to warnings the next time around". or "Too much paper has been printed in the past, and will have to be wiped out no matter what." "People say gold is useless. Not true. It is demonstrating its function right now for all to see. Gold is the ballast for the monetary printing press and gold will relentlessly punish all offenders" The list of timeless quotes goes on and on but I will leave you with one last quote that is very relevant to today's problems in the U.S dollar and the so called economic rebound. "It beginning to dawn on some people that to defend the dollar and avert a dollar crisis, U.S interest rates will have to go up; or money will be transferred from the U.S to England, Europe, Australia Japan or Canada to take advantage of higher interest rates and stronger currency, . However, if interest rates go up sharply it will choke off our recovering economy. What a dilemma!" The similarities between now and then are simply uncanny. All of these quotes tell the real story of why gold (and silver) were so important throughout history and that history always repeats it's self.
rest of article:- http://www.gold-eagle.com/editorials_05/baltin072205.html
