Could gold really go as high as $6,000? It's possible

Gold's soaring price has striking parallels with a similar rise in the 1970s, when it touched $850 an ounce. And if history were to repeat itself, gold could peak at over $6,000 an ounce this time around, says Dominic Frisby. Here’s why.

On January 21, 1980, after a decade of Western economies stumbling from one economic crisis to another, gold spiked to a high of $850 an ounce at the London PM fixing. That price wouldn't be seen again for another 28 years.

One man, Jim Sinclair, sold all his gold the very next day, netting some $15m ($40m in today's dollars). How did he manage to time the market so perfectly? "I think I just got sober one day before everyone else," was his explanation in a 2002 interview.

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