Is $2300 inflation corrected 1980s gold peak considers stock increase?

Posted by admin on July 1st, 2010 filed in Gold Stock

Everywhere I look, people say the $850 gold peak in the early 80s is now worth $2300 when corrected by inflation. Does that considers the increase in gold stock over that period? I mean, money supply increased and that pushed inflation but gold supply also increased, so do you take into account the differential rate of change between these two supplies when you price it at 2300?

The adjustment is based on the fact that a dollar in 1980 purchased far more than a dollar in 2010. It is purely a monetary adjustment, not based on gold stocks or gold supply.