The price of gold futures has crossed a new psychological threshold, closing at above $4,000 per ounce.
While gold futures have crossed the important $4,000 per ounce mark, spot gold, the price someone will pay today, hasn’t quite gotten there. The spot price of gold closed last night in New York at $3,984/troy ounce. In other words, a dollar’s value has fallen from around 1/35th of an ounce of gold during Bretton Woods, to 1/3,984th of an ounce of gold today.
Today, the real inflation-adjusted price of gold is almost as high as it was when gold prices spiked in January of 1980. If prices increase just a bit more, the value of a dollar compared to gold will be the weakest it’s ever been.
Action Line: When you want to talk about gold in your portfolio, email me at ejsmith@yoursurvivalguy.com. And click here to subscribe to my free monthly Survive & Thrive letter.
