Record Gold Myth

The myth, she is sturdy. The inflation hawks won't correct for inflation if it helps them sell gold bars:

“Gold sets record high amid economic fears,” say The Associated Press and Bloomberg BusinessWeek. “Gold surges to record high,” says CNN. Gold closed Monday “at a record $1,402.80 per troy ounce,” reports the front page of today’s Wall Street Journal.

It’s a good story. Unfortunately, it’s not true, at least not in any meaningful sense.

Gold is at a record only if you fail to adjust for inflation. ... The actual record was set 30 years ago, when the price of gold, in today’s dollars, hit $2,318 — or 71 percent higher than it closed on Tuesday.