gold, page-111151

You know I've been thinking about this store of wealth thing....

Go back 40 yrs and $100 would have bought you?

Same $100 dollars would buy today?

In the 80's you would know that it would have been 2 X $50 notes, as the hundred note was not printed yet.

If you bought $100 of gold back then what is the value today?

Gold had spiked in the late 70's and early 80's and was about $440 by the close of 82.

So about a quarter ounce of gold. Today that quarter ounce is worth $440

Yet your $100 now would buy what? A lot less then back then.

Yes you could have been smart and invested that money with an average return of 5% and made more. About $200 more but...

as a "stored value" without investment just pure and simple to keep the variables to a minimum (as you can trade gold too) you can easily see gold appreciated in value and money lost value without effort. Over that time span. That's why gold is a store of value.

Now this is where gold has not kept up.

If you had $5000 dollars stashed away in your walls for safekeeping it would definitely not buy you the same today that $5000 would have bought a top of the range SS Commodore with a lot of fuel money.

If you had put $5000 dollars worth of gold away it would be worth $20000 today. Obviously gold is a long way down on a new SS if they were still made but never the less it's better than nothing. Gold in that aspect has not kept its value. Although in 82 it was at a five year or so peak for gold. Either side of this time would have brought much better yields. Chose this time as it shows both sides of the story.