What Has The Gold Price Done Since 9-11

The world as we knew it changed after the dot-com crash of 2000 and especially after 9-11.

• National debt zoomed much higher
• Stock markets crashed
• The Fed introduced more “stimulus” and helped create a housing bubble
• Government became larger and more intrusive
• Gold, silver, crude, and other commodities rallied

What do the charts show?

Since 9-11 national debt (official) has increased from $5.773 Trillion to $17.858 Trillion, an increase of $12.08 Trillion. Note the increasing ratio of gold prices to national debt after adjusting for increased population.

We can reasonably assume that National Debt will continue increasing a $Trillion or so per year. I think gold will rise even faster, with notable corrections along the way, for the next several years, as it has since 9-11.

Note the graph of the ratio of gold to the S&P 500 Index. Both are rising together and gold is now inexpensive (again) compared to the S&P 500 Index, like it was on 9-11.

Since 9-11 crude oil prices have gone much higher and crashed lower but on average they have increased with gold prices.

Gold and silver increased dramatically since 9-11, but they corrected after mid-2011. They are now inexpensive, per the graphs, compared to the national debt, the S&P, and crude oil. Note the ratio of gold to silver where peaks in the ratio have been a good indicator of bottoms in the prices for gold and silver

Read Christenson’s newest book “Gold Value and Gold Prices – From 1971 to 2021“

The Deviant Investor

GEChristenson