Boobooman posted this in a comment below on the thread by Eagle

If you missed it…it is very much worth a repost

In 1969, gold at $35/oz backed the Fed’s liabilities by 10% — by 1980, gold peaked at $875, backing the Fed’s liabilities
by an absurd 133%. From the peak in 1980, interest rates have fallen steadily, boosting the value of bonds held by the Federal Reserve and the dollar, to gold’s detriment.

At the current gold price of $1260/oz, gold backs the Fed’s liabilities by only 7.4% To return to a 28% backing (the average since 1971) would require gold to trade at $4,700/oz. To match the peak in 1980, gold would have to trade at $22,600/oz.
That is how crazy a gold bull market can get, and that’s how crazy it might get once interest rates really start rising.

Daniel Oliver
Myrmikan Research – October 24, 2016

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Fully’s question….What was that 2001 to 2011 Gold mega rally all about in the face of shrinking interest rates ?

In light of the above analysis that was a real anomaly !