Some eye-opening numbers from John Williams on how much higher Gold & Silver must further rise to match the 1980 all time highs, let alone exceed them, in order to recapture the massive inflation of the past 30 years. In a nutshell Silver's barely scratched the surface of it's latent potential at a mere $30 an ounce for starters.

No wonder Eric Sprott favours Silver over Gold. With these price objectives in mind, Silver's a possible 15-bagger from here versus a 'mere' 5-fold increase for Gold, and the miners will be sitting on barrels of cash all paying very handsome dividends as Sinclair has long predicted.

ESL

John Williams continues:

“The earlier all-time high of $850.00 of January 21, 1980 would be $2,391 per troy ounce, based on November 2010 CPI-U-adjusted dollars, and would be $7,840 per troy ounce in terms of SGS-Alternate-CPI-adjusted dollars.

In like manner, the all-time high price for silver in January 1980 of $49.45 per troy ounce has not been hit since, including in terms of inflation-adjusted dollars. Based on November 2010 CPI-U inflation, the 1980 silver price peak would be $139 per troy ounce and would be $456 per troy ounce in terms of SGS-Alternate-CPI-adjusted dollars.

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2010/12/15_John_Williams_-_Massive_Selling_of_US_Currency_Lies_Ahead.html

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Notes on how www.shadowstats.com calculates the true measure of inflation:

The CPI chart on the home page reflects our estimate of inflation for today as if it were calculated the same way it was in 1990. The CPI on the Alternate Data Series tab here reflects the CPI as if it were calculated using the methodologies in place in 1980.