Gold Bugs UPDATED

Yes, another chart.

Again, this chart is via The Big Picture. Barry Ritholtz discusses the technicals of gold trading.


What I found interesting is the historical perspective offered by the chart. I remember back in the 70's and 80's when I first became aware of gold as an investment option. The headlines of "gold hits new high" were not uncommon then...as the economy was not doing well. Generally, gold is seen as a safe investment, a hedge against inflation, and a hedge against bad economic times. Look at the flat, uninteresting, trading activity during the Clinton boom.

If that's so, what do you think the recent trading in gold says about traders thinking for the future?

UPDATED: The Cunningrealist Realist expands on what I'm trying to say, and does so quite eloquently.