Why gold is a great bargain today at 1605/ounce
Check out the chart below which shows the steady rise in the price of gold from 2001 to 2010 -- at which point the fed began manipulating the price to keep it from rising further.
Without that artificial cap - - you can extrapolate the slope to what gold would in all likelihood be at today -- somewhere conservatively above 2200/ounce.
The Fed's shorting of gold down to boost confidence in the dollar shows their desperation. Otherwise -- why thwart a bull market?