The events of which you speak were anomaly of such short duration that they are not even a blip on the long term curve. ... but this time it's different, right? This isn't a blip and it's not a bubble?
Please show this long term curve that demonstrates the correctness of the author's argument, then. I'm interested in learning something new.
Here is one such curve. The spike indicates an over reaction to the increase from the artificially low prices in the seventies. When Nixon broke the tie, gold was trading abroad at about $40. After that is looked for and found a higher average level. That is what is happening again now.
When the tie was broken, the price in US$$ varied but the peak was of very short duration
I have looked but can't find the chart dating from 1793 that illlustrates the point well. There is also a chart for hundreds of years that is pretty much flat and the spike is barely noticeable. This one shows the very short duration of the spike as well
