Commentary: High Gold Price Points to Sustained Inflation

The economy looms large in the minds of most people and not simply because it is an election year. It affects us directly. We spend a lot of our waking hours at work, and our jobs are often connected to the welfare of families and children. With everything being more expensive, getting a toe hold on mere middle-class status is harder now than it was for older generations. Many people are slipping down a rung or three.

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I've always kept an eye on the price of gold ever since I was prospecting and placer mining back in the 1980s. Over time I found it was a good indicator of how the economy was doing - when gold prices are stable, so is the economy. When it's rising, the value of the dollar is falling.

What trips me out is over the past couple years, it's been taking big jumps instead of rising or falling a dollar or two at a time s it had in the past. The past couple of months though, I'm seeing the biggest changes in price that I've ever seen - I'm talking 20, 30 or more dollars a day. It usually opens with a drop from last night's closing, but makes up for it by the end of the day.

But above $2300 an ounce? Never in my life did I figure I would see it so high.

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