, Columnist
Cancel the Recession: Soaring Gold No Longer Means Economic Doom
Whenever prices of the precious metal skyrocket, most economists tell us, a major slowdown is around the corner. It looks like this time will be different.
As good as gold.
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In the summer of 1971, Richard Nixon shocked the world — not by eating cottage cheese with ketchup, but by chopping the dollar’s connection to gold. Gold prices skyrocketed, and soon after the economy wilted, with a recession followed by stagflation followed by this. Ever since, economists have warned that when gold’s value ascends to the heavens, death is near — the death of the economy, that is: