Well, 1980 was during the period of the great inflation. We were headed down the path toward economic crisis. A nation can not long survive rampant inflation.
The purpose of holding precious metals is to guard against loss of buying power during times of inflation, when wages are not keeping up.
That peak shows what happens when inflation is high - Gold was high too, but the paper currency was being devalued.
Speculators might do some arbitrage and make some quick profits, but if they sell their entire stock of precious metals, they have sold their insurance against economic crisis and inflation.
>> if they sell... they have sold their insurance against economic crisis and inflation
There are more productive and enjoyable ways to ensure against economic crisis and inflation than owning gold.
Use your gold to buy and improve land, and purchase tools for self-sustained living.
Or buy firearms and ammo. :-)
Or both, what the heck.