Tuesday, 1 March 2016

More or Less?....................from Rico

In 1930, one ounce of Gold was worth $20.67 in redeemable dollars.
 
Today, as I write this, one ounce of Gold is worth $1,240.40 in non-redeemable dollars.
 
In 86 years, this is a "change" by a factor of sixty times.
 
So, while one ounce of Gold remains one ounce of Gold, is Gold worth MORE or the Dollar worth LESS?
 
I wonder if Larry Summers or Paul Krugman could answer that question?
- Bwa-hahahahahaha. I'm kidding. They're both completely clueless.


1 comment:

Anonymous said...

It's called 'inflation'. Assuming around 8% long-term price growth p.a., 1930 and $20 start points, 1940 = $40, 1950 = $80, 1960 = $160, 1970 = $320, 1980 = $640, 1990 = $1280, 2000 = $2560, 2010 = $5120, Gold has fallen behind.