Gold on its way to $2,130 an ounce?

Gold stocks anyone?

clipped from www.bloomberg.com Gold rose beyond $850 an ounce in London, breaching the record set more than a quarter-century ago Prices advanced 31 percent last year, the biggest gain since 1979, when U.S. inflation was more than 13 percent. Unless the world suddenly becomes a wonderful place to be, the gold price will continue to move higher,'' said Jeremy Charles, global head of precious metals in London at HSBC Bank Bullion also advanced for a seventh consecutive year in 2007 as investors sought an alternative to the declining value of the dollar. Gold rallied 12 percent in the fourth quarter, climbing to a 27-year high since mid-September, when the U.S. Federal Reserve cut interest rates. JPMorgan Chase & Co. predicts gold will strengthen to $950 within six months. Based on 1980 dollars, the January 1980 record of $850 is the equivalent of about $2,130 today, according to an inflation calculator on the Web site of the Federal Reserve Bank of Minneapolis.