Why gold is still undervalued

Rising inflation, growing monetary problems... We've been here before - in 1974, to be exact. Back then, gold soared 73% and silver 84%. Is history about to repeat itself? asks James Turk.

In an alert entitled 'The Case for Commodities' that was published on November 9, 2003 I wrote: 'The flight out of the US dollar continues, and commodities are one of the logical safe havens in the search for undervalued tangible assets. And one of those undervalued tangible assets is gold.'

The CRB Continuing Commodity Index back then had closed at 251.03. Gold closed the same day at $383.30 per ounce ($12.323 per goldgram). The CRB Continuing Commodity Index closed yesterday at a new record high, as we can see from the following chart.

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