The Bull Market for Gold and Silver: 1970s vs Today

By Goehring & Rozencwajg

We are using the 1970s as an analog for precious metals this decade. So far, it is proving to be prescient. By 1974, silver had significantly lagged gold for two years and staged a furious catch-up rally. From late 1973 to 1Q74, silver surged 125%. Incidentally, this “catch-up” rally marked the end of the first leg of the great bull market of the 1970s. Over the next two years, gold and silver both fell 45%, while gold stocks collapsed 70%.

We believe the current bull market started in 2018 when gold hit $1160.