Gold Price: Should I be worried about short-term dips?

Gold Investment - 3 October 2011

Investors are wondering how much more both gold and silver prices can climb this year. Recently, gold was not far from $2,000 per fine ounce, up 27% this year already, which is close to its inflation-adjusted high of 1980. That high lasted a single day. There is however more than meets the eye.

Invest in precious metals today! Contact us for details.

Invest in precious metals today! Contact us for details.

There are several ways to calculate different price predictions to reach realistic expectations for returns on investment. This projection will use figures that are strictly based on past price behavior from the bull market in the 1970's for the reason that the best predictor of the future is the past. According to the CPI-U, which is the government's broadest inflation measure, gold does not have far to go to match the 1980 high of $850. However, silver will have to climb much further to reach its past high. The CPI is however not such a great measure of inflation since it can easily be manipulated by governments.

Invest in precious metals today! Contact us for details.

Invest in precious metals today! Contact us for details.

John Williams uses the Shadow Government Statistics calculations and his statistics are much more accurate. They are based on the calculations that were done during the Carter administration and stripped of subsequent manipulations. If gold and silver were adjusted to this level of inflation, both gold and silver prices would soar.

<< Previous    [1]  2  3    Next >>