The Real Gold Price Highs, Inflation-Adjusted


On this chart, I increased, corrected the historical gold price with the US consumer price index (CPIAUCSL/260.33). Calculating the value of the past gold prices on the actual price level. (Inflation-adjusted gold price.)

The result is, the 2011 all-time high in the gold price, by approximately 1,911 USD, is 2,204 USD worth on the actual price level, today. And the January 1980 highs, near $900 is $2,912 worth in today’s dollars!

Of course, that means nothing for the future, doesn’t guarantee any further price movements. But, if we take into account the difference between the present and future value of money, it shows that the price of gold has not actually reached a new peak this year. (Although, there are many arguments why this should happen. And the opposite, too.) The actual level of cold seems to be less scary to me.


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