InvestorQ : How did gold move during the second phase between 1981 and 2001 and what were the unique features of the same?
Arya Nanda made post

How did gold move during the second phase between 1981 and 2001 and what were the unique features of the same?

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Deepa Salunkhe answered.
2 years ago
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This was in a way the golden era for equities. With Alan Greenspan embarking on a massive plan of cutting interest rates, equities as an asset class took off in a big way. There were quite a few critical phases during this period. The 1986 oil prices crash added a lot of economic value to oil importers. The break-up of the Soviet Union and Eastern Europe post-1989 put an end to whatever fears of war were left. After all, with just one superpower, the prospects of a war were remote. Then in 1995 the internet was invented and global business was never the same again. All these 3 factors created huge equity wealth and it did not subside till the technology crash of 2001. During this golden era of equities, gold prices fell gradually from $800 / troy oz to $255 / troy oz. consistent gold price fall actually concluded with the 9/11 attacks in New York after which gold gradually started picking up and moving higher as the era of equities started whittling down.

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