Gold blew through $3100 $3200 an ounce this morning.
As noted in prior posts, an increase in the price of gold is never a good thing.
Looking on the bright side, a good chunk of this last push was merely from dollar going down the toilet.
That should happen because gold is an internationally-traded commodity. It’s a global market. When the value of the dollar falls, the value of gold, expressed in those dollars, rises.
I guess I need to start a countdown or something, as by my calculation, if gold tops $3519 (or so), that will be its all-time high in inflation-adjusted (CPI-adjusted) terms.
So, right now, gold is just (1- $3234 / $3519 =~) 8% below its all time high, in real (inflation-adjusted) terms.
I described the economic conditions under which gold set its previous high, in a recent post on this topic:
Before that, my most recent prior post on this topic was from half a year ago:
