>>23224523Similar behavior can be seen in gold, indicating that, while a theoretical top price is unknowable, a ratio of average or low trend price to top price has not happened in absolute terms.
However, there is another way to look at the issue of gold prices, and that is to consider over all inflationary trends.
The price of gold from 1934-1973 was about 34 an ounce, then in the 1990's it was about 350 an ounce. Now gold is tapping 3400. The same effect can be seen in housing, with homes averaging under 10k in the 1960s, then 100k in the 90s and approaching 450k now. The ratios of gold to other goods and services stays about the same, and every 30 years, a zero is added to the average, though these ratios are not exact relations to one another.
The point is that prices now will be, in 2050 or so, be seen as what prices in the 1990s are seen as now. The cycle will continue. So you can wait for a crash, which is not in theninterest of most people, rich or poor, or make peace with the trends, and count on the power of inflation in the long term to smooth over the relatively high prices seen today, making them affordable by the standard of tomorrow.
