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The information in the article regarding gold as a hedge against inflation is inaccurate. Gold was never $1850.00 an ounce in 1980. it was $594.00. Gold prices have only gone up steadily since then, there has never been the spike you claim with such a dramatic downturn. Gold is clearly the best hedge against inflation.
Gold peaked at $850 on January 21st 1980 on a daily basis and made a low for the year on March 18th at $481.50 See:http://www.kitco.com/ 1980 Gold Prices but in inflation adjusted dollars it averaged about $1850. Inflation adjusted means the price you would pay “if” it was adjusted to today’s dollars not the actual price people paid in those days i.e. 1980 dollars. By adjusting prices for inflation we can see the trend without the changes in the purchasing power clouding our judgement. If gold were the perfect inflation hedge the red (inflation adjusted) line on the gold chart would be perfectly flat. See: http://inflationdata.com/Inflation/Inflation_Rate/Gold_Inflation.asp
Obviously, the red line isn’t flat so Gold is not a “perfect” inflation hedge. A slightly rising red line would give you a gain perhaps comparable to interest. However if you bought at the peak in 1980 you would have had to wait until now (over 30 years in real “inflation adjusted” dollars) to break even.