history lesson for all, page-29

pete 11,
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"It's time for a history lesson for all you young folks who are whining about the recent dip in the price of gold.

The high-water-mark of gold is about $1900. Today we ended at about $1570.
Let's calculate the magnitude of this most recent "loss."
(1570/1900)-1 = -17.4% (approximately). "
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And to get back to $1920 gold has to increase by 22.3%.

Suppose you're lousy investor and you bought gold at it's peak exactly 33 years ago at $850.

Gold is a great investment according to you, so you shouldn't have to wait very long to get your money back.

The inflation adjusted price of 1980 gold in today's dollars is about $2300, so just to get your money back after 33 years, gold would have to increase by 46.5%.