RBC Capital Markets, an arm of the Royal Bank of Canada, on August 3rd of this year lifted its high-case forecast for the price of gold to $3,060/oz by the first quarter of next year. This is thanks to soaring demand for the metal which also doubles as a reserve currency.
The World Gold Council (WGC), a research organization controlled by the gold mining and processing industry, reckons that gold in today’s dollars needs to reach approximately $2800/oz to set a new record.
After being adjusted for inflation the gold price today is approximately $200/oz below its 2011 official peak set on the London Bullion Market of $1,895/oz, and well below its January 21, 1980 record high of $843/oz which is approximately $2800 in today’s money, the WGC said in an investment update in July.
I remember the cost of gold skyrocketing in my senior year of high school, the cost of gold was impacting the cost of class rings. Many passed because of the cost; gold was still over $800 per oz. in 1982.
When my father passed, my mother bought some gold coins as an inflation protector. Those coins were split among us; I still have mine as an inflation hedge.