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Thursday, December 13th, 2018 - Buy Gold - Bringing you trusted gold news and gold investing information since 2006

Gold: Is the Best Part of the Rally Over, Or Yet to Come?

However, one might argue that when gold peaked out in 1980, prices reflected irrational exuberance. Therefore I would also take gold prices at the beginning of 1990 (when prices has corrected over 50 per cent from the peak of 1980) and adjust it for inflation to get a more rational result.

Gold was trading at $399 an ounce at the beginning of 1990. When adjusted for inflation, gold prices should have been $671 currently. This means that in the last two decades, gold has gone up by only 112% (inflation adjusted) considering the current prices of $1421 an ounce. This is surely not anywhere near to a bubble considering the massive injection of liquidity into the global markets in the last two decades.

Therefore, there is no doubt that the long-term uptrend is very much there for gold. A near-term correction (very likely) will just act as an opportunity to add on to exposure to gold (in my opinion).

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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