A chart for the gold bears

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).

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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