02 September 2011, 1:57 p.m.
By Kitco News
http://www.kitco.com/

(Kitco News) - Gold and silver are far from a bubble and still have some ways to go to hit inflation-adjusted record highs from 1980, says Jeff Clark, senior precious-metals analyst with Casey Research. Based on the government’s urban Consumer Price Index, as of Aug. 31, gold would still have to climb 28% to hit match an inflation-adjusted high of $2,330 and silver would have to climb 227% to $136. The figures would be many times higher using “John Williams' Shadow Government Statistics calculations,” Clark adds. Clark says the bull market is “far from over” since there are no signs of debt and “money creation” issues ending. Some reports suggest gold may be in a bubble, but Clark disagrees. “Want to know when we'll really be a bubble?” Clark says. “When they stop saying it's one and actually start buying and recommending gold. When they begin running 15-minute updates on the latest gold stock. When you are sought out relentlessly by your friends and relatives because they know you know something about all this ‘gold and silver stuff.’ All told, I think the baked-in-the-cake inflation--rooted in insane debt levels and deficit spending--will be one of the primary drivers for rising precious metals this decade.”