I often hear investors say "I don't want to buy gold now because the price is too high."

So, let's see for ourself if the price really is too high.

The following gold graph is one calculated by John Williams over at shadowstats.com. He uses the true CPI numbers that were in effect during the Carter administration.



The true price of gold in January of 1980 comes in at $7,267 when adjusted for inflation.

It is not hard to see why the true price of gold is not allowed to trade freely, and why the US government is sitting on the price of gold. If allowed to trade freely, its price would be much higher, thereby attracting investor monies the the government desperately need to continue to be invested in the stock and bond markets to keep the ponzi scheme going.

So, to answer the question "should you buy gold now at these high prices" you only have to consider two things.

First, the true all-time high is $7,267, 7 times higher than today. This occurred during the crisis in the late 70's which is nothing compared to what we are going through today. The upside potential for gold today is unlimited, and the current increase in gold from $250 to $1,000 per ounce is only scratching the surface of what is to come.

Second, notice how gold prices go through very discernable cycles. As you can see, the current cycle has just begun. Buy today and you will be buying low, not high.

The conclusion is obvious. Buying gold today, at these prices, is a no-brainer.