arabianmoney.net / 06 May 2014
A new calculation of the inflation-adjusted peak prices for gold and silver in 1980 makes a nonsense of claims that price metal prices peaked three years ago at $1,923 and $49 an ounce. Shadow Government Statistics has an inflation-adjusted $10,823 for gold and $568 for silver in figures produced for Casey Research.
Those who say that $1,923 was equivalent to the top of $850 in 1980 are simply talking rubbish and looking at an inflation-adjustment index that is deeply flawed and obvious nonsense. Consumer prices have not doubled in 34 years. They are up five-fold at least.
Room to rise
Casey Research also point out that the percentage rise in the gold price has been lower so far this time: ‘From the 1970 low to the January 1980 peak, gold rose 2,346 per cent. It climbed only 535 per cent from the 2001 low to the September 2011 high – nowhere near mimicking that prior bull market.’