Tuesday, December 20, 2011

John Williams: Inflation Adjusted Highs for Gold Silver are Now $8,702 and $506

John Williams of Shadowstats has released new all-time high values for gold and silver in SGS-Alternate-CPI-adjusted dollars. 
Adjusted for real inflation, the 1980 gold high of $850 is now $8,702, and the 1980 silver high of $49.45 is now a whopping $506/oz.
The next time CNBS scares you into thinking gold or silver is in a bubble, remember that gold is currently only 18% of its all-time high in real terms, and silver is trading at only 5.6% of its all-time high!!

Despite the September 5th historic-high gold price of $1,895.00 per troy ounce, and despite the multi-decade-high silver price of $48.70 per troy ounce, gold and silver prices have yet to re-hit their 1980 historic levels, adjusted for inflation. 
The earlier all-time high of $850.00 of January 21, 1980 would be $2,472 per troy ounce, based on November 2011 CPI-U-adjusted dollars, $8,702 per troy ounce based on SGS-Alternate-CPI-adjusted dollars. 
In like manner, the all-time high price for silver in January 1980 of $49.45 per troy ounce, although approached earlier this year, still has not been hit since 1980, including in terms of inflation-adjusted dollars.  Based on November 2011 CPI-U inflation, the 1980 silver price peak would be $144 per troy ounce and would be $506 per troy ounce in terms of SGS-Alternate-CPI-adjusted dollars.Read more: