In a figure discussed in the text, and reproduced below, I showed plots of the gold price and mentioned that, if we had corrected for inflation, then the 1980 price would be seen to be much above the current peak: obviously, the small percentage price rise of gold, between 1980 and 2007, must have been way below the percentage rise of the us CPI.

(a) In the above we presumably use us CPI rate to deflate the usd prices. But is this result generalizable to all countries-is this conclusion necessarily also valid for Japanese or German investors? Why (not)?
(b) If you think the result does not necessarily hold true elsewhere, what would you bet w.r.t. a hyper-inflator like Zimbabwe?: if inflation is much higher, then the real price of gold must have fallen even more- no?
(c) What would guarantee identical real price paths in all countries: APPP, RPPP, or what?

700 200 Gold (Log USD Troy Ounce)