gold breaks out, page-350

john,

A book I have here says :

'While real gold prices and gold prices adjusted for inflation have generally remained close, they have diverged from each other to a huge extent since 2005. In the early 1980's the two prices were almost identical and even overlapped. But in 2010, we had real prices of $1400 while the inflation-adjusted price of $644 lagged by over 50%.'

Quite simply, it's a bubble, goldbugs hope some sucker will pay them more for their gold than they paid.