Gold: after the goldrush - The Economist

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elsinga's picture
elsinga
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Posts: 34
Gold: after the goldrush - The Economist

Source: http://www.economist.com/node/16531196?story_id=16531196

Gold is not as expensive as it seems

Jul 6th 2010

FOR the past nine months, gold has been trading consistently over $1,000 an ounce. It reached a high of $1,259 on June 18th, up 35% from a year earlier. After adjusting for inflation, today’s heady prices are some way off the 1980s mania. The 2010 yearly average of $1,154 is still 29% below the inflation-adjusted price in 1980 of $1,623. Perhaps now is the time to sell. After the January 1980 peak, the price fell by 55% over the following two years.

chart

jimbergin's picture
jimbergin
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Joined: Apr 22 2010
Posts: 6
Re: Gold: after the goldrush - The Economist

Different time, different situation.  The US was a creditor nation then.  The Fed crushed the economy to kill inflation.  Can't see falling below $1000, but if it does I will back up my truck to buy more.

jim

 

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