Gold started 2008 with a bang, closing on the Comex Jan. 2 at its highest level ever (if you ignore inflation). It has gone higher since. There are significant differences between the 2008 and 1980 gold markets, however. " Today's price does not reflect the effect of 28 years of inflation. Gold's price would need to be, maybe, $2,300 to equal its 1980 peak.

" The 1980 price spike was sharp and short-lived. Today's price has been accomplished gradually with broad worldwide demand in the face of admitted major efforts by governments to hold down the price.

" Conclusion: the price of gold today is not yet at record levels. Instead, I expect that within 24 months.

Numismaster