The Commonly Reported Price of Gold is Not "Real", It's Nominal. Only the Real Price Should Matter to us and Tyhee.

Bob Hoye (Howestreet.com) has been consistently making this distinction and using it to justify his contention that juniors will party this year as the Real Gold Price will soar regardless of what the nominal gold price does.

Yesterday, Jay Taylor put a measurable handle on this "Real" price when discussing how he views what's "real". For him, it seems it's based on the percent of the Rogers Raw Material Fund that one ounce of gold can buy. For example, at the Pre-Lehman crash, it was 15%, following that it hit a high of about 45%, and is now about 35%.

http://www.voiceamerica.com/voiceamerica/vepisode.aspx?aid=38122

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