Currency crisis and gold

http://beforeitsnews.com/story/19836/The_Sovereign_Debt_Disaster.html

Applying the true inflation rate on the gold price shows that the gold high in 1980 of $850 in todays terms is $6,400.

It's interesting that Societe Generale, a French investment bank, came to the same number--but through an entirely different method of calculation. They used the total amount of USDollars in circulation, divided by the total amount of gold above ground, and came up with a $6,300/ounce price.

Here is a video that explains the monetary base / gold inventory ratio calculation.

http://www.foxbusiness.com/search-results/m/27466595/more-growth-ahead-for-gold.htm

Disclosure: no position in GLD ETF. long gold mining shares