Price of gold breaks through $900 level
By Javier Blas in London [Financial Times, WWW.FT.COM
Published: January 14 2008 19:32 | Last updated: January 14 2008 19:32
Gold prices surged above $900 a troy ounce for the first time ever as investors on Monday sought refuge from a weakening US dollar and alarm bells about further losses on Wall Street.
As the spot price hit $914 an ounce in London traders were betting it would reach $1,000 within three months. The surge to a record high was also prompted by fears that lower interest rates and higher food and energy commodities would trigger an inflation rise. [...]
"Wow!!" you say. "
"Higher than 1980
!!!" you exclaim.
Uh...no.. Gold is still at a HUGE discount from 1980...
On January 21, 1980, gold hit a high of US $850.00 per troy ounce.
The inflation rate from January 1980 to November 2007 (the most recent data) is 170.15%.
That means to have an equivalent value in 1980 US dollars, gold will have to reach US $2333.00
dollars per troy ounce!
Expect Gold to continue to move higher. It has not even gotten halfway to that imaginary 1980 ceiling. As the dollar weakens and the mines in South Africa start to peter out, it will continue to rise.
... and anyone that complains that I should be doing something other than prospecting can STFU, now.More than $1000/ounce
... yo. I am so there.
Yeah, baby. See you in the wilderness. That guy with the shovel and knee deep in dirt? That'd be me.