There is a suggestion that an $119 low is possible in the near future if the recent trend breaks down further.
The action above $1500 in 2011-2012 looks like a bubble top and actually looks ridiculous on this long term chart, not as extreme as in 1980 but very exaggerated.
I remember thinking back in late 2010 when gold made a rolling quadruple top which had its high at $1430 that the price action had changed. I thought that it might be the top and the sharp correction to $1307 in early 2011 might last quite a while and go further The price struggled to get back over $1430 but it broke through and went first to $1577 and then to $1920.
Meanwhile silver corrected from $31 to $26, got back to $31 and screamed to $49 as gold made an intermediate high at $1577, took a crash and went back to a secondary high at $44 as gold hit $1920. The failure of silver to make a new high was a big non-confirmation.
It is interesting that silver and gold topped within days of each other in January 1980 but topped 4 months apart in 2011. I don't know if this signifies anything.
Really there were warnings all over the place so I did not buy anything once gold was over about $1300. Low premiums on semi-numismatic coins such as $20 pieces were also a warning in late 2012 as gold was over $1600, below the high but still very overpriced. This sort of thing happens at a top and it was happening at $300 below the top.
Looking at it now, the gold market needed a big correction from $1430 in order to be sustainable and stable. Going to $1900 at that stage was madness.
For a look at long term prospects, please see:
http://1000gold.blogspot.co.uk/2015/02/essay-on-gold-comparing-current.html
dealing with price history from 1971 and possible action out to 2040.
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