by Lawrence Williams:
Specialist precious metals analyst, Jeff Nichols, who is currently on the bullish side of the argument for gold, although he avers he is not actually a ‘gold bug’, has been involved in the sector now for 40 years having started his career at Citibank in 1973.
His specific interest in gold began when he was tasked by senior management to write a report on the future role of gold in the monetary system – gold was then at $120 an ounce having risen from its fixed price of $35 from when President Nixon had removed the dollar’s convertibility to gold two years earlier.
At the time he felt that the gold price would rise – not because of any likely return to the monetary system, but because the price had been artificially repressed for so long beforehand.
Indeed, few would have believed at that time that the yellow metal would see such a spectacular rise as it did ahead of its 1980 peak and crash, and after the crash perhaps only the true believers felt that it would recover again to the seemingly dizzy $1920 new height achieved a mere one and a quarter years ago. ...