Kerry your timing is pretty good because I just resolved a problem on my 1980 TA with inaccurate temperature gage readings.
To some extent I agree with Brian that a partial short could cause the gage to read higher. A dead short will cause the needle to go off the scale. It wouldn't hurt to follow the wire back from the sending all the way back to the fire wall. I think your sending unit is on the driver's side cylinder head as shown in the first photo. If not routed properly the wire could be grounding out being too close to an exhaust port. A short would cause the gage to go full right off the scale and an intermittent short would probably cause the gage needle to flutter.
Temp sender location on driver's side cylinder head. If it is not located on the cylinder head, then it will be at the front of the intake next to the thermostat.
IMG_0254 by
Lawrence Alexander, on Flickr
If the sending unit wire was broken or disconnected this is what the temperature gage would look like on a warmed-up engine. Ignition on, but engine not running.
gage with sender disconnected by
Lawrence Alexander, on Flickr
If the sending unit wire had a dead short to ground, this is what the gage would look like. Notice the needle is off the scale. Ignition on, but engine not running.
Gage with grounded wire by
Lawrence Alexander, on Flickr
Next time it reads high you could disconnect the sending unit wire and see if the gage goes to zero. Any reading above zero means a bad gage or partially shorted wire. But, I wouldn't be surprised if it's a bad sending unit. I bought mine from LectricLimited, part number 08993107. I believe your car will use the same part number, but double check.
I run a 180 degree thermostat on my car, typical operating temps are 184 - 187 degrees (from my FAST EFI display). Next chance i get I will try to get an Ohm reading on the sending unit once the car is warmed up. This may help you in determining if your sending unit is bad or not.