Tom's Inflation Calculator

One website I admire is Tom's Inflation Calculator. You can just plug in the numbers yourself and get an immediate result, without fuss. Select shadowstats as an option.

So if you take gold's price from the period during 1985 - 1997, you'll see we have entered an era when the price of gold, adjusted for inflation using shadowstats reveals that the basic entry point for a mine would have been just been able to get underway @ $400/oz. in 1997 ($1491/oz. today - when GBN.V declared commmercial production or when Komis had started 15 years ago and was obliged to shut down), where also a mine would have done well to start up @400/oz. in 1985. (eq. $2951/oz. today, using shadowstats)

So we are in a period of adjustment in the gold price commensurate with inflation using shadowstats, and by no small irony, can compare the times during the gold triple waterfall crash when gold mines were still able to start and grow.

In some ways, this is the reverse scenario, where gold prices are climbing and in a bull market, whereas during the 1980's and 1990's gold prices were technically deteriorating adjusted for inflation and in a bear market.

So really, going back over time, what price of gold is required before miners provide a return?

http://www.halfhill.com/inflation.html

source: Market Oracle Article, 2008

-F6