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

Chart courtesy of InvestRcentre.com

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.

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Merryn Somerset Webb

Merryn Somerset Webb started her career in Tokyo at public broadcaster NHK before becoming a Japanese equity broker at what was then Warburgs. She went on to work at SBC and UBS without moving from her desk in Kamiyacho (it was the age of mergers).

After five years in Japan she returned to work in the UK at Paribas. This soon became BNP Paribas. Again, no desk move was required. On leaving the City, Merryn helped The Week magazine with its City pages before becoming the launch editor of MoneyWeek in 2000 and taking on columns first in the Sunday Times and then in 2009 in the Financial Times

Twenty years on, MoneyWeek is the best-selling financial magazine in the UK. Merryn was its Editor in Chief until 2022. She is now a senior columnist at Bloomberg and host of the Merryn Talks Money podcast -  but still writes for Moneyweek monthly. 

Merryn is also is a non executive director of two investment trusts – BlackRock Throgmorton, and the Murray Income Investment Trust.