The Real Price Of Gold

The Real Price Of Gold

Still, as impressive as the gold bull has been, its price remains stuck in the days of disco and Jimmy Carter

Gold Getting Even Rarer

That startling observation is from Larry Edelson of Weiss Research, and what he means here is that gold isn't just undervalued at today's $700+ price, it's a steal .Which, by any investor's standard, would still be a steal. Edelson's premise is that gold would "have to more than triple just to regain the same purchasing power it had 26 years ago!"The funny thing is, gold is supposed to be the ultimate inflation barometer. Its price is supposed to honestly tell us, from generation to generation, just how ridiculously inflated the dollar has become. So what happened? What's been keeping the precious metal from telling us the cold, hard truth? That's a good question. Whatever the answer is, whatever mischief the central banks have been up to in manipulating the precious metal, it will all soon give way to the irrepressible pressure that's been building.

Has something happened to change gold's dynamics these past 27 years? Has there been some gigantic gold find? Production has not only stalled, it's been rolling backwards . The South African gold industry, for just one precious metal producer, looks like it's running out of bullets. Back in 1970, 70 percent of the world's gold came from that country. By the 21st Century, though, SA production had shrunk to a mere 14.5 percent of global output.

South Africa isn't alone in this. "After peaking in 2001, world gold production has been steadily slipping. One reason for the lack in new supply is there haven't been any big discoveries of gold deposits in a while, certainly not on the scale seen in the 80s and 90s. For the few discoveries that were made, the length of time needed to develop and extract their deposits has lengthened from four to seven years," wrote Bernard Baumohl, Time magazine's senior economics reporter.Gold At An "Inflation-Adjusted" $2,176"In terms of today's dollars, gold reached $2,176 in 1980."The Real Price Of Gold

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