Gold Priced in British Pounds (GBP or £’s) – January 2013 Update

This is the regular Gold Priced in Pound Sterling update.  The last update was in December 2012.

The chart below shows the Nominal Monthly Gold Price since 1979.  The key Nominal Gold metrics are:

• The Nominal Gold Price is currently £1,030.03 which is 1.3% below the December 2012 Price of £1,044.09.
• Year on Year Nominal Gold Prices are 3.5% below the January 2012 Price of £1,067.76.  

Click to enlarge

The chart below then adjusts this chart by the continual devaluation of Sterling through inflation.  The key Real Monthly Gold Price metrics are:

• Real Gold Peak Price was £1,176.61 in January 1980.  At £1,030.03 we are 12.5% below that peak today.
• The long run average is £528.29 which is indicating a very large 95% potential overvaluation.
• The trendline indicates the Real Gold Price should today be £478 which would indicate even further overvaluation today.  

Click to enlarge