"Using Australian dollars, in real terms gold is nowhere near its highest price ever.
$600 in 1980 and $720 in 1987 were worth much much more than $900 now.
How would you like your 1980 take home pay to only be 50% more today? That makes quite plain that at present GOLD IS NOT AT ITS HIGHEST PRICE EVER.
Let's stop falling into the trap and talking about paper money in constant dollars as if a dollar is a dollar is a dollar. A 1980 dollar IS NOT a 2006 dollar."
Hear, hear.
The 2006 dollar is worth about 3.08 times the 1980 dollar if you use the official CPI figures.
If you prefer to use the M3 money supply as a better indicator of the amount of money likely to be chasing gold then this has increase by about 12.1 times since 1980.
Either way, gold still has a long way to catch up.
