A chart for the gold bears

This chart may suggest that the price of gold is taking potential inflation into account. But that doesn't mean it won't go higher.

Here's one for the gold bears among you a chart sent to me by a reader that shows the gold price in inflation-adjusted terms (as measured by the US consumer price index).

10-06-10-Gold-Price-chart

It does suggest, as the reader says, that there is a reasonable amount of potential inflation already priced in. But that doesn't mean that the gold price can't go higher hyperinflation (the possible end game to the financial crisis) certainly isn't priced in, for starters, and it has a long way to go before it hits real bubble territory read our recent writings on this here.

MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
Explore More
Merryn Somerset Webb
Former editor in chief, MoneyWeek