A November 20 Wall Street Journal article stated that Gold’s January 1980 record high would have an inflation-adjusted equivalent of $2,290/oz.
I find it amazing that even after the long parabolic rise we have seen in Gold since 2001, we are still far short of that inflation-adjusted price. On an “all things considered” basis one would have thought that Gold would have performed stronger over the last 30 or so years. The Gold price really went into submission from 1980-2000.
I think it underscores the fact that at least from a historical perspective of the last few decades, it has been very important as to when Gold is purchased.
I mention this as Gold appears overdue for at least some type of correction. The recent price action, resulting with Gold now at $1169 (December futures) has been strongly parabolic.
I think that many factors are now in play that will generate considerable volatility in Gold’s price going forward.
Gold’s price should be very interesting to watch, and I think it carries great significance on a number of fronts.
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SPX at 1106.24 as this post is written