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Originally Posted by mbhunter
Inflation-adjusted the price of gold would have to be north of $1400/ounce to top its high in the early 1980s. By that standard, gold is still cheap.
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But in the early 80s, we had double digit inflation. If we see that again, then yes, gold probably will shoot up as a hedge. But if inflation remains modest, I'm not sure the economic pressure to elevate gold prices exists.
Again, I'm not arguing against owning gold interests. I think you should. I'm just not sure that prices will be skyrocketing any time soon.