Do read the King World News blog entry with
John Williams
“Dollar Debasement Has Just Begun. Despite all of Wall Street’s
negative hoopla over gold during the price volatility of the last week, the precious metal still is on track to outperform the Dow Jones Industrial average, meaningfully, for the year. That would be the eighth consecutive year of doing so. Irrespective of any recent or future extreme price swings, however, I look at gold as the long-term hedge against all that has started to unfold in the ultimate debasement and destruction of the U.S. dollar.”
The long-term cost of these actions remains inflation. Inflation, however, is likely to be a very near-term effect this time as well. The various economic and financial outlooks remain as discussed in Hyperinflation Special Report (2011); they will be reviewed in the pending Hyperinflation 2012.
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.”
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Also listen to this old interview on
Financial Sense Newshour - John Williams: No Way Out! (originally aired 05/31/11) mp3 link [31:33]