The rapid rise in gold prices does not bode well for the power of the dollar

Nnot LONG At that time, gold seemed to have lost its luster. In the decades after President Richard Nixon abandoned the gold standard in 1971, the yellow metal fell out of favor with central banks, which instead hoarded their reserves in dollars. In the 1980s and 1990s, investors and households grew tired of poor returns. Goldbugs were dismissed as eccentric bringers of doom. Gold was tempting when forged into a shiny ball and was useful for specialized manufacturing, but it was hardly a serious financial asset.