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WSJ says gold near record. No. Still about $500 away from the record.

Posted by John Reed on

WSJ headline say gold near record price—and since gold is little more than a hedge against inflation, you must adjust for inflation. The record was in February, 1980 if you adjust for inflation: $2,541.61. It's now $2,055 an ounce.
The actual story is how it has moved so little since 1980. Some inflation hedge.
Here is the adjusted-for-inflation chart—the only one that matters when the price of the commodity is almost entirely dependent on its hedge-agasint-inflation image:

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