... prices between $500 and $5000 are equally good. The current price seems within a wide band of prices way back to 1934. Does anyone have an interpretation that I don't see?
Don't forget that the gold supply is also expanding:
That's new production. We'd have to integrate it or find another source to see the total supply over time.
It'd be interesting to see a long term plot of gold supply vs. dollar supply vs. $/oz.
Edit: And another thought. The cost of production is around $330/oz. That makes mining extremely profitable at these prices. Is there any reason to doubt that, just like BitCoin, in the long run the high prices will bring in tons of mining capacity until the system reaches equilibrium again (probably with both a higher cost of production and a lower price of gold)?