Bloomberg Oct 19th - key excerpts below
Gold would need to rise more than sixfold to top the 1980 record, using a more accurate inflation-adjustment, said John Williams, an economist and the editor of Berkeley, California- based Shadowstats.com. He said the government has understated the cost of living over the past two decades with adjustments in the way it measures the basket of goods and services monitored by the U.S. consumer price index, or CPI.
Gold futures for December delivery closed Oct. 16 at $1,051.50 an ounce on the New York Mercantile Exchange’s Comex division, gaining for a third straight week.
“If the methodologies of measuring inflation in 1980 had been kept intact, gold would have to hit $7,150 to be the equivalent of the 1980 record,” Williams said.
At Jersey, Channel Islands-based GoldMoney.com, which held $759 million of gold and silver for investors as of Sept. 30, founder James Turk said bullion can climb eightfold based on the historical relationship between the metal and the Dow Jones Industrial Average. The Dow is up 10-fold since January 1980.
Gold and the Dow, which has gained 14 percent this year to 9,995.91, were at about the same level during the Great Depression and the early 1980s, he said. On Jan. 21, 1980, as gold futures surged to $873, the Dow slipped to 946.25.
“The dollar is constantly being debased and inflated,” Turk said. “By 2013, gold is going to be at $8,000 and the Dow will be at 8,000.”
Back in Jan of 2008, before the US money supply exploded, I targeted an upside potential of $5-6K - see linked article: Gold how high?
Schiff's July 2008 Video: $5000.00 Gold by 2012 - Dollar never recovers
If we experience a US dollar crisis and/or hyperinflationary blowout, all bets are off and not even the sky will be able to contain the future price of gold - can you say million or billion dollar gold?
Zimbabwe: inflation rate hits 11.2 million %
A mere 2 months later and the Zimbabwe currrency collapsed/was no longer accepted: Zimbabwe - Gold for bread
It'll never happen you say - well think again:
Hours from Global Collapse - Electronic run on the banks