
Calculations relating to #inflation are misleading, so I don't do them or use them. I focus instead on #PurchasingPower. In Jan'80 #FearIndex = 11.6% & the fair value of #gold (I calculate annually) was $390, only 46% of its $850 peak (gold was way overvalued). The Sep 2025 Fear Index is 4.5% & gold's fair value is $10,902 (gold is undervalued). So on a #PurchasingPower adjusted basis (not inflation adjusted) gold today would need to be $23,700 (1 / 46% * 10,902) to equal gold’s purchasing power at the Jan'80 peak. That puts the 1970s bull market in perspective. I expect in time gold will reach fair value & probably exceed it like 1974 & 1980. The gold/silver ratio in 1980 was 16-to-1. So if the #silver price rises & ratio falls to match 1980, the purchasing power of silver today would be $1,481 ($23,700 / 16). Given that gold is undervalued, silver is undervalued too given the high ratio & is only mined at around 10-to-1 (which approximates the weight of silver in the earth's crust compared to gold that geologists say is there and yet to be mined).




















