The gold bull run of the 1970s started with a default when the US defaulted on its gold obligations in August of 1971. The current gold bull market will likely end closer to major debt defaults. During the 1970s, the US and the world had a completely different debt profile than today. Debt levels were much lower than today, and GDP was growing faster than debt, as is evident in the following chart. The risk of a sovereign debt default is clearly much higher today than during the 70s. Debt will continue to rise until confidence is completely lost. It is a debt trap—there is no way out. So, although the current gold ... (full story)