With a closing price on December 31 of $ 1,676 per ounce, Gold marks the 12th consecutive year of uninterrupted trend up. Its growth in 2012 averaged 7%, while in 2011 the growth was 10%. In both cases, this is probably the true inflation, which if recognized officially will lead to end of all paper-money experiments designed to "fight the crisis" and "rescue troubled debtors of any kind". Instead, Governments present us some 2-3% inflation and explain how the "stimulus" is insufficient.

 I think inflation is even more because there is a policy in suppressing the price of gold, because it can inspire a global panic. This should mean at some point there will happen a sharp jump and an "exploding" price.

In any case, if someone "sees" in this a "bubble", it will be good for him to go to the eye doctor. The talks of a "bubble" are just part of the propaganda against gold - to suppress its price. 7% (previously 10%) are less even than the increase of the money supply. I.e. the gold is even behind the printing press. It not only in not a bubble, but even is lagging the natural expected and proven in history growth. Gold usually goes along with the money supply. When this does not happen, a tension is accumulated somewhere. When and how it will explode we will see in the coming years.

But if you have saved money and if you hold it in banknotes of fiat money, or in bank-deposits, so you are regularly paying your inflation tax :)

Dobri
Jan 1st 2013