In 1927, you could buy a nice new Ford for twenty $20 gold pieces. And in 2021, you can buy a nice new Ford for twenty $20 gold pieces.
I don't know, Pat. I can't figure it out.
I don't know, Pat. I can't figure it out.
Gold
- Thread starter burleybreath
- Start date
"When minimum wage was $1.25 per hour (1964) quarters were made of silver. If quarters were still made of silver, the minimum wage could still be $1.25 per hour, thereby benefiting employers. But the purchasing power of those 5 silver quarters, is approximately $17.50 in today's Dollars.Nov 19, 2018" usgoldbureau.com
not sure what's confusing about that? It's just one of those little hints that time isn't like it appears to our wonderful but limited nervous systems. I don't see what's confusing about that. 
Sorry fellas, I was in a bad mood and being sarcastic. I must stop that. I've got way too much paper, inflation is coming, and I lived through the Carter years. Never mind.
The key thing to understand imo is, the median annual wage in the US in 1927 earned about 160 of those gold pieces...today it earns about 18 of them.
Value stays the same - fiat currency decreases always...
This reminds me of when I lived in Argentina and there was a moneda (coin) shortage. Turns out the value of the metal in the coins was worth more than their currency value so people would hoard them and melt them down.
Confederate paper dollars are worth more than their face value in Green Backs! Who would have thought the Blue Back would become a store of value.
So what I get out of this is that gold is not a good investment...
Over the long term, that's been true for a couple hundred years.
Generally, owning gold coins or bullion works to preserve wealth in an economic environment where people are concerned with a declining dollar and rising inflation, or even deflation, and it has a long-standing history of holding its value when financial and political systems break down.
But for most people it’s not a great investment in the sense of an investment to grow wealth.
When looking to make money investors are typically looking for a much better return on their investment dollar than just keeping up with inflation or preserving assets.
But for most people it’s not a great investment in the sense of an investment to grow wealth.
When looking to make money investors are typically looking for a much better return on their investment dollar than just keeping up with inflation or preserving assets.
Yep. I think of it as a chaos hedge.
I started "investing" in precious metals from 2000 to today. When I started, gold was sub $300, and silver was under a fiver. As a long term investment, it has done very satisfactory. Even at todays prices, I add to the stack on the dips, turning fiat paper into real money. To me, it's a low risk savings account (or old age pension) that offers a better return than current bank rates. Today, I look at it as more of an insurance policy than an investment, for the same reasons peregrinus gave. Yes, there are better investments to be had to grow wealth - most having varying levels of risk. If you want to diversify and sleep easy at night, having a percentage of your assets in physical gold isn't a bad idea. There are a lot of dedicated people out there (and forums) that approach "stacking" in the same way we pipe guys approach cellaring...both are trying to secure a safety net for an unseen or changing future.
Gold is still a commodity as much as anything. Yes, price is speculative, but it's still one of the most useful base elements we have.
The only way the price of Gold would not keep pace with inflation is if we start finding asteroids full of it.
The only way the price of Gold would not keep pace with inflation is if we start finding asteroids full of it.