Could inflation increase gold’s price? At the recent major inflationary period (1977-1980) gold prices increased from $150 an ounce to $850 an ounce – almost sixfold. At present, gold prices are up fourfold without inflation. Unless you believe the government will stop spending and printing, gold prices are bound to rise.
This year, discussions will move from deflation to inflation. Inflation fears will increase gold prices higher in 2010. Similar to gold’s price corrections of 2005, 2007 and 2009, pull backs will be seen as good buying opportunities. So it’s not too late for long-term investors to purchase gold right now, even if they have delayed riding one of the strongest and longest-lived gold bull markets in the history of money.