Gold Prices (Inflation-Adjusted)

Gold and Silver prices keep rocking and rolling. I'm still getting way too many questions about when to start shorting these names. I'm getting way too many calls about Gold bubble this Silver bubble that.

Lets get some perspective on the Gold prices if adjusted for Inflation. Ron Griess over at Thechartstore.com is constantly putting up some great charts. In this case, he adjusts Gold for inflation by the all items in the Consumer Price Index.

[caption id="attachment_670" align="aligncenter" width="580" caption="Trendline and Silver added by Allstarcharts (click on chart to make bigger)"][/caption]

The chart shows that Gold still has close to $1000 to go in order to reach the Real all-time highs. I added the inflation-adjusted price for Silver so you can get a good idea as to how far Silver prices have to go. I say Real, meaning inflation-adjusted, as opposed to the nominal highs that you see Gold and Silver making these days. You can see the Bureau of Labor Statistics for more on the CPI here.

Also see:

Silver vs Gold Ratio compared to S&P500 (Allstarcharts)