From The Daily Reckoning:

“The historical average for the gold coverage ratio,” Minerd writes, “is roughly 40%, meaning that the current price of gold would have to more than double to reach the average.”

It gets better: “The gold coverage ratio has risen above 100% twice during 20th century,” most recently at gold’s 1980 peak. “Were this to happen today, the value of an ounce of gold would exceed $12,000.”

Full Article: A Formula for $12,000 Gold

James Clark

James Clark is the editor of Goldscape.net. Originally from Melbourne, he has been a digital nomad since 2003, running a location independent business while travelling the world.