Gold a bargain in real terms

For those you who like to break things down to the fundamentals, this chart should serve as an eye-opener. Why? Because it tells us gold’s value in real terms when adjusted to depreciation in the purchasing power of the dollar. Secondly, it tells us where gold stands today with respect to past peaks in the price – once again in real terms – thus providing an indicator whether or not it is a good buy at current prices.

CPI adjusted gold price shows the 1980 high at $2,792

Shadowstats CPI adjusted gold price shows the 1980 high at $13,070

Gold a bargain in real terms