The gold price again....

I've been thinking that all the online and print media commentary recently around the price of gold, and the way it has breached the $1000/oz level, has to take account of inflationary changes to be meaningful. So commentators often note that gold has been at higher levels than this if you use inflation-adjusted dollars. For example, gold was at $850/oz in January 1980: in inflation adjusted terms, the price was much higher then, because the dollar was worth so much more.

This article in thebull.com.au explores this interesting topic in great detail in the context of warnings from fearful analysts that gold is now 'too high'. Using new charts, it shows that in adjusted terms, gold is not reaching 'new records' at all, and the article concludes that even when taking inflation into account, gold is on a bull run upwards which is not likely to stop. A very good read.

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