On December 24, 2023 it was noted that during a five year period between 1974 and 1979 various bills with an accumulated cost of $129 billion were approved to stimulate the economy. What followed was a parabolic rise in the price of gold and silver. Between 2020 and 2022 $7.85 trillion in economic stimulus packages were approved. The latest Senate version of their “One Big Beautiful Bill Act” has an estimated cost of $4.2 trillion. Approval of this and economic stimulus bills between 2020 and 2022 would result in an accumulated cost of $12.05 trillion. Essentially, over a five year period this cost will be exponentially larger than what was passed between 1974 and 1979. Using 1974 to 1979 as a model the following charts provide a representation of where gold currently stands compared to where it would be expected to peak.
Note that this information is for educational purposes only and not a recommendation.
Stock charts courtesy of StockCharts.com.
