True. The biggest question is, a what price to we have to get to in order for there to be a glut. In 1980 it was $850.
$850 inflation adjusted is about $1700 now. I'm good with that. I'll sell before we get there.
Yes, it is possible for Gold to spike up to $850. When the Hunt brothers were involved, I believe it was at or near $1,000 (per troy ounce) for a time. Rather than buy ounces of gold, a greater profit may be had by speculating on gold futures. If the price were to spike up to $850 with in the contract's year, the profit would be tremendous.
It is also interesting to note that when gold and silver last spiked (silver was at $50/per troy ounce), the government froze trading for a time and the price began to slide. That is the trick though; predicting at what amount it will rise to before government intervention. Then, once it hits the plateau, selling short. Someone is playing the market here. I would not be surprised if the major investment houses themselves are pushing this so they can play the small investors and squeeze billions in profit from the market.