By Anthony Fernandez
Seeking Alpha
The typical analysis out of Wall Street tends to downplay gold and precious metals while being at the very least conservative about prospects of future price inflation. After all, according to official government numbers price inflation is under control and is no threat. However, this has never sit well with most people who have to deal with rising gas prices and rising food prices.
What I intend to show is that using historically consistent data, we are in for the largest inflationary episode that this country has seen for at least the past 30 years and that the fundamentals of gold are almost exactly the same as they were at the beginning of the 2000-2008 bull run.
Before getting into my correlation analysis, I first would like to describe the source material that I used for inflation. Historical prices for oil, gold, wheat, corn, coffee, beef, sugar, rubber, and iron were acquired from Index Mundi to generate what I consider to be a more accurate picture of price inflation.