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Is Gold Bound to Fall?

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Golddrivers
Published : December 15th, 2009
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Category : Editorials

 

 

 

 

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One of the main bear arguments you'll hear is that gold is bound to fall since it is trading at record highs these days. Yes, gold is trading far above its 1980 peak of $850 but you don't have to be Einstein in order to understand that today's dollars don't possess the same purchasing power as 1980 dollars. So if we take a peek at the inflation adjusted chart for gold, the picture changes dramatically and proves beyond any doubt that gold is nowhere trading near record highs these days. In order to do so it should be trading above $2300+..(according to official government inflation data!).

 

 

Now when you take into account the real inflation number instead of the bogus government inflation numbers, then the picture changes even more to the extreme. In order to reach inflation adjusted highs when using inflation statistics reported at www.shadowstats.com, gold should hit $7000+ ..

 

The current drop in price of gold means nothing in the big picture. Gold will trade at new inflation adjusted highs before this bull market is over ($10.000 by 2015, see also related article 'Last Chance to buy gold below $1000?' published on Sept 02, 2009).

 

Eric Hommelberg

Editor, the Gold Discovery Letter, the Gold Drivers Report

 

www.golddrivers.com

 

 

All articles by Eric Hommelberg

 

If you would like to be kept updated on our charts and dispatches then you could sign up for the FREE Gold Drivers Report. You will receive our TGDR Chart of the Day, Discovery News and Trading Halt/Resume Alerts. You can sign up for free HERE

 

If you are interested in buying some physical gold yourself then you can do so in our new bullion store at https://www.golddrivers.com/store where we sell Valcambi Suisse bars (including assay certificates) in the 1 – 100g range for almost the lowest prices on the web.

 

 

 

 

 

 

 

 

 

 

 

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