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).
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.