Like the good old days

We are now on the threshold of one of the most important financial changes that history has encountered, and not without historical parallel. Indeed we are witnessing a return to trend. The aim of this paper is to present the incredible power of such training, both simple but also full of potential.



To better understand this return to the support, it is necessary to make a comeback in the past and see if this has happened before. We see that the point of buying the highest that gold has been occurred in the 1970s, leading him as a return to the carrier, as you can see from the chart above. The gold price was fixed by the Government of the United States at $ 35 per ounce in 1935 and remained the same for a period of 32 years before fleeing to increase in 1968.



Despite its calm, the price of gold was beset by powerful forces. When in 1935, Franklin Delano Roosevelt fixed the price of gold to 35 dollars per ounce, the latter found himself overvalued. Indeed, the price of gold was of 20.67 dollars per ounce until 1932, a general price increase of 70% was needed to justify such a reassessment. Thus, the late 1930s proved to be very profitable for mining companies.



The situation is reversed when, during the Second World War, the government ordered the closure of all mines for the duration of the conflict. The fact that the American gold standard is the cause of the birth of the most powerful economy the world had not crossed the minds of great thinkers of the time. America is seen firing a distinct advantage because it was the only country in favor of gold, making its economy more powerful than other countries. This allowed him to have better equipment and a more sophisticated technology that, in the hands of General Patton, overthrew the trend.



However, during the Second World War, the U.S. saw their consumer prices double. The price of gold fixed at $ 35, previously overvalued, also became obsolete. Thus, despite the reopening of the gold mines after the war, the undervaluation of gold does not allow them to pay their employees competitive salaries during the years 1940-1950. In 1956 a general strike broke out in the mines of California, who, being unable to meet the demands of their employees were forced to close their doors. Many of these mines are still closed to this day.



While the fixed price of gold became increasingly free of reality, the law of supply and demand came in. With a very low price of $ 35 per ounce, gold mining does had no choice but to decline the offer while at the same time, the jewelry industry saw its demand increase. The United States can not alone bear the burden of removing the gold price, they recruited nine other nations formed in 1962, the London Gold Pool, which took over this operation.



Following a tremendous demand for gold has been raging in 1968, the London Gold Pool was broken. The price of gold was then launched into what became the greatest buying opportunity in history.



It was also easy to see that, firstly, having been stable for a period of 30 years, gold has exploded upwards, not downwards. The application was therefore greater than supply, although this offer was the highest in history. Ten nations worked to keep a low gold price, but supply still found himself overwhelmed. Finally, a small mathematical genius threw some light on this whole situation: the price of gold was approximately 20.67 dollars for 145 years. However, since 1933 the United States, average prices had tripled (causing gold prices to 62 dollars per ounce). The political situation also suggested that the paper money was on the verge of a major crisis. When Richard Nixon announced "I am a Keynesian," the Republicans, just like the Democrats, opposed to gold, leaving open the path towards crisis and rising prices. This has actually occurred, and it was then not so difficult to realize.