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.