Some exciting gold charts

[Serpo]

http://67.19.64.18/news/2014/4-4pd/image005.gif
This chart confirms the fact that gold is very cheap at this moment. Mr. Lundeen compares the current gold price to the purchasing power of a dollar in 1920. He calculates that gold needs to rise to $8750 in today’s dollars to return to what it was worth in 1920. This sets the stage for a continuation of the current gold bull market. Mr. Lundeen has created a similar chart for silver (not shown) which shows silver would need to rise to $435/ounce to equal its worth in 1920. This price dovetails with the price arrived at by Mr. John Williams at Shadowstats.com.


more.....http://news.goldseek.com/GoldSeek/1396641720.php



(http://news.goldseek.com/GoldSeek/1396641720.php)
(http://news.goldseek.com/GoldSeek/1396641720.php)http://www.gold-eagle.com/editorials_12/images/lundeen060313-3.jpg

(http://news.goldseek.com/GoldSeek/1396641720.php)
(http://news.goldseek.com/GoldSeek/1396641720.php)Here is silver in constant 1920 dollar terms. To bring silver up to its January 1980 bull market highs, in constant 1920s terms, silver would have to increase to $450 an ounce. That is an increase of about 20 times, as compared to gold’s gain of a factor of 5.7 times to return it to its 1980’s high in constant 1920 dollar terms. Well, if you want to make the big money in a gold bull market, buy silver! http://www.silver-phoenix500.com/article/gold-and-silver-constant-1920-dollars (http://news.goldseek.com/GoldSeek/1396641720.php)

[Sparky]

The problem with this analysis is the huge fundamental difference from 1929, i.e. we are no longer on the gold standard. So the comparison is structurally incorrect. A fairer comparison would be to gold prices after the gold window was closed in 1971.

Gold peaked at $850 in 1980. An inflation adjusted peak today would be $2500. Now one could argue that fundamentals are worse now, which means additional adjustments would have to be made in addition to inflation adjustment, which I think is the case. I've been guessing $3200 since 2003, and I think it will happen in the 20016-2018 time frame.

[Neuro]

The problem with this analysis is the huge fundamental difference from 1929, i.e. we are no longer on the gold standard. So the comparison is structurally incorrect. A fairer comparison would be to gold prices after the gold window was closed in 1971.

Gold peaked at $850 in 1980. An inflation adjusted peak today would be $2500. Now one could argue that fundamentals are worse now, which means additional adjustments would have to be made in addition to inflation adjustment, which I think is the case. I've been guessing $3200 since 2003, and I think it will happen in the 20016-2018 time frame.
Big difference between your inflation adjusted number of $2500 and their inflation adjusted number of $8750. The question is... Are things 10 times the price level of 1980, according to shadowstat, of are they 3 times the price level according to official stats? I remember getting 5 Swedish Kronas in weekly allowance in 1980 aprox. Nowadays I give my children 50 Swedish Kronas in weekly allowance. A Swedish krona is aproximately same value in dollar terms now as it was in 1980. Some things are relatively more expensive today compared to 1980, for instance central Stockholm real estate. Our neighbor bought a small apartment in central Stockholm for SEK 70,000 for his teenage daughter, nowadays it would cost at least 2,500,000. Other things like candy, clothes and wine may have only tripled in price since 1980... Difficult to say for certain, but I think on average price has increased with somewhere between 6-12 times since then...