Oh your looking at it just from inflation. Why doesn't that surprise me? Now its understandable why you get confused between this era and the late 70s. Your not taking into fundamentals this time around that didn't exist back in the 70s.
Gold amongst other reasons is going up because of the debasement of major currencies on the planet. You keep printing money the currency its printed in gets diluted. You do it for decades like the Americans have been the value in the dollar is now only a false promise.
Anyone that thinks the US and European debt crisis can be solved by printing more money are deluded and brain washed. Its in fact making the problem much worse.
This fiscal crisis is trying to unfold at its own free will but governments keep getting in the way and prop it up with digital "money". Only delaying the inevitable. Although this could go on for many years yet.
Money is moving into gold because its tangible. Its the perfect currency medium because its rare and durable. Investors are more and more nervous about being exposed to a fiat currency. This is why the gold price moves with the sovereign debt growth.
The gold market is very tiny compared to the forex and money markets. That alone should give you some idea of the potential uptrend movement of gold.
Like the guy said. No FIAT system has ever survived and this one is barely holding on. Where is the money going to flow when it does collapse?
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