In 1975 a car battery cost $100, adjusted for inflation..now it's still $100. Many factors are at play here.Quote:
Posted by Skol: In 1975 the PoG averaged about $160, adjusted for inflation that's $648, so 600-700 is about where it should be.
All commodities and metals are priced at what the market will pay. When gold was just a few hundred dollars/oz, almost no mining occurred here because there was no money in it. Gold production was lower those years presumably. Now even the big miners are lucky to get the gold out for less than US$400/oz, and they have to pay for dud mines and all the expensive gear too. So US$800 or more would be more like a rock-bottom figure that miners would accept. All the easy gold has already been taken, now we're into big scale mines, low grades generally. The PoG seems to be holding up OK today, while all around it drops off.
This is an interesting site, slightly tinged with gold dust, and I found this article about India:
http://commentaryandanalysis.mining....ld-price-rise/