$1650? I strongly doubt that gold will reach that price any time in the next 30 years. When gold went above $600, there was a signficant decline in demand for gold in gold jewelry. I saw an article about people in India switching to lower grades of gold jewelry with less gold content. Unless inflation increases by another point or so, I don't think you'll see gold move above $700 any time soon. Inflation is apparently now starting to decline as oil supplies are beginning to grow slightly faster than oil demand and economic growth is slowing down. That is a close race but it looks like the oil producers are starting to increase excess capacity a little beginning next year.
It may happen sooner than you think:
http://www.zealllc.com/c2006/Zeal011306A.gif
We're on the same page.
