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Gold At $2000 Or $600? No Difference

Analyst, Author, and Owner of Kelsey's Gold Facts
March 28, 2022

Gold at $2000 oz. today is the same as it was in 1980 at $600 oz. In other words, on an inflation-adjusted basis, gold is no more valuable today than it was forty-two years ago.

One ounce of gold today at $2000 is equal to one ounce of gold in 1980 at $600. What you can buy with one ounce of gold today is equal to what you could buy with one ounce of gold more than four decades ago.

This is consistent with gold’s role as a store of value.

GOLD AT $3K, $10K? 

We have heard much lately from those who claim that gold could easily rise to $3000 oz. or more; maybe even $10,000 oz. Some say it could happen quickly, too.

Those prices are possible, of course; but likely not quickly or easily. That is because gold – at $2000 oz. – already represents fully a ninety-nine percent decline in the purchasing power of the US dollar.

In order for gold to rise beyond $2000 oz., and stay above that number or increase to a higher level, there would need to be further significant declines in US dollar purchasing power that are apparent and permanent. 

The price of gold reflects the effects of inflation that have already been absorbed into the economy; not those which haven’t occurred yet. 

WHAT TO EXPECT NEXT FROM GOLD

Not much. The price could run up a bit again to as high as $2100 oz., but we probably have seen the highs for this move up.

If there is an extended period of US dollar strength or continued improvement in the economy, then the gold price could decline sharply. And it could stay down for several years, too.

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Kelsey Williams has more than forty years experience in the financial services industry, including fourteen years as a full-service financial planner. His website, Kelsey's Gold Facts, contains self-authored articles written for the purpose of educating and informing others about gold within a historical context. In addition to gold, he writes about inflation and the Federal Reserve.

Kelsey is the author of two books: INFLATION, WHAT IT IS, WHAT IT ISN'T, AND WHO'S RESPONSIBLE FOR IT and ALL HAIL THE FED! 

Kelsey Williams is available for private consultations, public speaking, and interviews at [email protected]


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