Though US$850 is the nominal high price for gold (actually reached in early 1980), adjusted for inflation, a new gold price would look more like $2,200.
So what?
That means gold's bull market up until now is really just the first of what are probably three large upward phases. The second and third phases will be even more powerful than the first.
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About the Author
Dan Denning is the author of 2005's best-selling The Bull Hunter (John Wiley & Sons). He began his financial publishing career in 1997 and has covered financial markets form Baltimore, Paris, London and, beginning in 2005 Melbourne. He’s the editor of The Daily Reckoning Australia and the Publisher of Port Phillip Publishing.
Comment by Robert Burke on 26 January 2007:
The problem is that Gold is not the master in this monetary relationship. The men in high places will not allow this and will crush Gold at ever turn.
The bottom line is that this will never be allowed. Gold has a very small market capitalization and is easily manipulated.
Comment by Sharefin on 26 January 2007:
Robert
You forget history where gold has kept up with inflation across all millenia. (Pssst, wanna buy a suit?)
What you talk of happening is what has happened the last 30 years & only now is gold starting to play catchup.
So what you think will happen is what has happened & your views are blindsided by what is happening right now & will continue into the Krondratieff Winter.
Historically gold will catch up to inflation & as inflation has been hedonically (3% >>> 8%) adjusted we'll probably see gold much higher than $2,200.
Gold is rising in protest to the debasement of money & as Bernake speeds up the presses then gold will continue to play the fiat debasement game.
Comment by bill on 25 February 2007:
at what price point will the
Gov't nationalize gold,silver and
nickel?
when that happens;what are you going to do?