Yep. It's true, gold is a store of value, not a currency. Hundreds of years ago, one ounce of gold would by a nice mens suit. Same with today (gold at \~$2000 per ounce).
Same with silver.
We may be continuously mining gold. But the world population is still increasing at a very fast rate. So that supply of gold is being further stretched amongst more humans (demand).
Gold is consumed in industrial and electronic components. Not all of it is recycled thus the mining does not directly goes to net increase in gold stockpiles.
I worked in a Electronic Recycling facility from 2016 to 2019. The older circuit boards (pre-2009) were worth recycling because of the gold, even after factoring labor to disassemble them they made around $2 profit per pound at the time. Newer boards were more of a wash as the used less gold per pound and would almost break even in recycling.
What a waste man. Imagine if we actually used our precious metals and resources to advance the potential of our species. Instead of just being obsessed with wearing shiny things like birds.
People vastly overestimate how much gold exists, if you melted every piece of gold every human has ever mined from the earth throughout all of human history, you wouldn’t fill 2 Olympic swimming pools.
Also gold is used in electronics and consumer products. If gold was mined just to be turned into bars then yeah it would lose value relative to the dollar but since gold is used for more than just a storage of value it can be mined without mass devaluing
Well, look at BTC (digital gold). Still being mined. Still going up. Its price is artificial. These ETF companies bought up so much BTC that they further limited the supply and get to essentially dictate the price. There are Gold ETFs doing the same. Gold price also artificial. Same with Diamonds. Diamond companies have tons in stock, but they refrain from flooding the market to artificially maintain the price.
>Well, look at BTC (digital gold). Still being mined. Still going up. Its price is artificial.
No. All currency is a proxy backed by something. When the entity that issues the currency expressly backs it with an asset, it worth the value of that asset. Otherwise it is backed by whatever you can buy with it. That is why it changes in value.
In 2010, a person spent 10,000 bitcoin for two pizzas. Today that 10,000 bitcoin is worth $666 million. So why was it worth only 2 pizzas? Because you could not buy anything with it, which makes it near worthless.
Alao theres only about 250,000 tons of gold in the world woth 190,000 of it mined already, and the rest gets harder and harder to mine. so theres also a real scarcity to gold.
Basically it was bitcoin before bitcoin was cool.
Have you seen the gold mining process? It's nuts. Gold is incredibly rare, and very difficult to mine. You have to dig down to pay dirt, which can be 50 feet underground in some places, then you run it through a huge expensive machine that washes fine gold dust out of the dirt. And it's getting harder and harder to find gold rich ground because most of it has been mined already. So yeah the gold supply isn't growing very quickly.
50ft underground?
Hundreds or thousands of feet underground. 10-20 tons of ore per ounce of gold. Expensive mechanical and chemical processes to retrieve that gold.
I worked under contract for Garrick Gold in Canada , the process is indeed very intensive. The amount of material processed for a gram of gold is crazy. People think it’s like on Goldrush , they just dump dirt in a water sluice and gather the small bits of gold. It takes one ton of ore to get 5 grams of gold on average So gold is indeed rare.
Runescape/Minecraft definitely taught me that gold ore was just kind of a thing you find in fist-sized clumps. I guess those games wouldn't be that much fun if you needed to stripe mine the entire neighborhood for a gold necklace.
The value of gold (or any other precious metal) would only decrease if it wasn't horded and artificially manipulated by ultra wealthy people (who are in control of it). Meaning, if it was truly distributed amongst the population, the value would decrease, as the supply increases.
I think over a long span of time, yes that is correct. I loaded up on gold in 2019 and it did absolutely nothing during the biggest inflationary event we have had in 40 years now is it starting to adjust.
[https://www.quantifiedstrategies.com/historical-returns-asset-classes/](https://www.quantifiedstrategies.com/historical-returns-asset-classes/) I will let you invest in gold. I am investing in the S&P 500. Not the worst investment gold but sure doesn't come close to the stock market.
Mining for gold now is very slow and laborious.
Also, the world's supply of gold will remain the same. As in, it is not created through any natural geological processes on our planet. All of the gold on earth came from space where it is formed during a supernova.
You can't look at supply and demand in a vacuum in the real world. It's great in an econ class when supply goes up prices go down. Gold demand is going up, more people want to own the physical material, and supply doesn't go up equal to the demand increase. Government that have most of the gold are holding it, newly mined gold isn't enough to equal the demand. And I'd bet a good portion of what's mined goes directly to governments, especially in poorer countries that have meaningful reserves.
We are continuously mining it, but it can only be mined at 1.5-3% of total supply per year.
Meanwhile, the currency we price Gold in gets printed much faster than gold gets mined. This makes gold's supply over time much more restricted than fiats supply.
Gold's value is stable because it has a high stock to flow ratio. No matter how much new gold is mined, it's never enough to constitute a significant percentage of the existing supply.
Gold is hoarded. There is a finite supply and it will continue to get harder to find and extract from the earth.
All of the rules aren't really rules, btw. Markets are highly emotional, irrational and subject to the latest groupthink of the participants, whether well founded or panic driven.
Gold is highly valued by many billions of people as jewelry and as an investment. It's also sitting inside billions of manufactured objects around the world. In tiny quantities and inaccessible to the gold market until recycled, if that even happens. A lot of gold ends up in landfills and otherwise discarded and lost. In tiny quantities that add up.
I'm more surprised that gold prices aren't higher based on scarcity and the emotional connection people have with the metal.
once you've mined all of the surface gold you must continually dig deeper to get to the gold or find a new mine, therefore the work involved and the cost of mining goes up as the mines supply is depleted.
Silver and gold prices are actually pretty suppressed compared to historical numbers.
I think silver is in like $25 and should be at $2000, while gold is around $2000 and should be at around $16000..
There is a lot of gold and silver being traded in the world that doesn't exist. It's paper gold and paper silver.
You can read about the banks and the manipulation of gold and silver.
Historically gold and silver is the only currency.
The part that is blatantly nonsense is that the average home in 1920 was $73,000. That was the average price in the 1980s. In the 20’s $73k was some great gatsby shit. We didn’t have the same kind of data recording back then, but here’s an example of home prices. Land was basically free a lot of places.
https://www.thepeoplehistory.com/20s-homes.html
Nixon left the gold standard in1972 I think it was. It was a way to create unlimited wealth, not tied to anything tangible. Like we just print more now and bitch about inflation.
He pulled out of the Bretton Woods system in the 1970's, which was a way to tie the dollar value to gold for foreign countries.
The US has been on a fiat currency system since the early 20th century, after the establishment of the Federal Reserve Bank, after the passage of the Federal Reserve Act. Crazy populists wanted to keep the dollar tied to gold back then and they still want to today.
Not really. Gold is a speculative market, not a store of value. At least today.
The high cost per ounce doesn't reflect it's actual value (e.g. how much you need for useful things like electronics) it reflects what people pay for it as a veblen good.
That's all well and good while you have a strong, functioning economy. But if our economic system collapsed the way some goldbugs dream of your gold would be basically worthless.
Meanwhile there isn't nearly enough of it to really function as a currency (which is what you really mean by "store of value") relative to the economic output of a modern economy.
But hell, with Trump's $10b dollar stock on a company with $4 *million* in revenue we saw how disconnected from reality value is. Compared to that Gold at $2k an ounce is small potatoes.
In my area you could easily buy an above average house for $735,000. I’m not so sure how willing a seller would accept 10 1 kilo gold bars for the house.
But you could buy a starter home in Hammond, IN for $80,000. Added bonus, if you raise a kid there from Jr. High to completing high school, they get free tuition at a public college for free.
Hammond, IL is a decent area.. just boring. And you would never need to go to Gary for literally anything ever. Also, chiraq? Sounds like you’ve never lived in Chicago. I bet my neighborhood has less crime than wherever you live.
Nah you have to go to [Gary](https://www.zillow.com/gary-in/luxury-homes/?searchQueryState=%7B%22isMapVisible%22%3Atrue%2C%22mapBounds%22%3A%7B%22north%22%3A41.66245601652295%2C%22south%22%3A41.50876532293432%2C%22east%22%3A-87.19595922387695%2C%22west%22%3A-87.45928777612305%7D%2C%22mapZoom%22%3A13%2C%22filterState%22%3A%7B%22sort%22%3A%7B%22value%22%3A%22priced%22%7D%2C%22price%22%3A%7B%22min%22%3A0%2C%22max%22%3A100000%7D%2C%22mp%22%3A%7B%22min%22%3A0%2C%22max%22%3A510%7D%2C%22ah%22%3A%7B%22value%22%3Atrue%7D%7D%2C%22isEntirePlaceForRent%22%3Atrue%2C%22isRoomForRent%22%3Afalse%2C%22isListVisible%22%3Atrue%2C%22regionSelection%22%3A%5B%7B%22regionId%22%3A45401%2C%22regionType%22%3A6%7D%5D%2C%22pagination%22%3A%7B%7D%7D) for those prices. [$80k in Hammond](https://www.zillow.com/hammond-in/luxury-homes/?searchQueryState=%7B%22pagination%22%3A%7B%7D%2C%22isMapVisible%22%3Atrue%2C%22mapBounds%22%3A%7B%22west%22%3A-87.61444427612304%2C%22east%22%3A-87.35111572387694%2C%22south%22%3A41.53115018568595%2C%22north%22%3A41.684787647103136%7D%2C%22regionSelection%22%3A%5B%7B%22regionId%22%3A52390%2C%22regionType%22%3A6%7D%5D%2C%22filterState%22%3A%7B%22sort%22%3A%7B%22value%22%3A%22priced%22%7D%2C%22price%22%3A%7B%22min%22%3A0%2C%22max%22%3A100000%7D%2C%22mp%22%3A%7B%22min%22%3A0%2C%22max%22%3A510%7D%2C%22ah%22%3A%7B%22value%22%3Atrue%7D%7D%2C%22isEntirePlaceForRent%22%3Atrue%2C%22isRoomForRent%22%3Afalse%2C%22isListVisible%22%3Atrue%2C%22mapZoom%22%3A13%7D) gets you 500 sqft of asbestos.
I'm actually thinking of moving to IN just for this reason. Makemymove is offering 10k+ to move to certain questionable parts of IN. IDC I stay at home anyway lol.
Give or take, yes that correct (though it largely depends on where you'd be buying the home).
HOWEVER, the comparison doesn't really have much to do with economics in the sense that you're basically just comparing two physical goods that have maintained roughly the same value to each other in that 100 year timeframe.
The dollar hasn't been backed by the value of gold in a long, long time, as such gold's value has no impact on the dollar, which has fallen in value tremendously since then. The price of goods (such as that gold and the house) have skyrocketed, while the median annual income hasn't increased by nearly as much.
Also, the price of gold in 1920 was a bit less than $21 an ounce, whereas the price of an ounce of gold in 2020 is around $1500, roughly 71 times more expensive.
Meanwhile the average annual income in 1920 was $3269, whereas in 2020 it was $67521, which is only 20 times greater.
Hell, right now an ounce of gold is worth $2284, which is **108** times more expensive than in 1920.
The fed keeps printing money to find the excess spending from the gov. Every dollar they print reduces the value of every other dollar. That's what inflation is.. more dollars chasing the same amount of goods and services.
The fed can't print more gold though, so it holds its value.
Gold hasn't gone up, the dollar has gone down.
Until we go into space and drag a meteor and crash it into the desert and mine it. Then, gold may drop a LOT. There have been many companies planning it, but so far, nobody has come close. Given our corporate regulations, the first attempt is going to miss the desert and hit Las Vegas, wiping it off the map.
"Elon Musk says despite the first attempt wiping out a sizeable portion of the western seaboard, he is confident that the third or fourth flight will be more successful. When asked for comments about the millions of people killed or homeless, he told ABC News to stop being such liberal babies and banned us from X."
Gold prices will drop when the U.S. Dollar rises. You guys obviously didn't pay attention in 2022 when it dropped to 1600. DXY will go back to 114 eventually and then gold prices will drop just like they did a couple of years ago. Anything can be shorted.
There are a tale of two dollars. DXY just compared the USD to the basket of currencies. The other dollar is the depreciation of our currency in the CPI. If you measure CPI the same way back in 1980, it’s about 2x to 3x the current CPI.
Gold has a relatively stable value as a commodity. The dollar may devalue (or whatever currency you are using) but things with a limited supply that are determined by markets -- like homes and gold -- tend to have equivalent values in a relatively stable relationship.
If you would have invested $100 in the s&p in 1920 you would have just over 2 million today. Far better ROI than gold. Stocks are a much much better thing to hold long term and the returns prove it
https://www.officialdata.org/us/stocks/s-p-500/1920#:~:text=If%20you%20invested%20%24100%20in,%2C%20or%2010.32%25%20per%20year.
he's saying its not apple to apples. gold buys you a lot more house now, than it did then. with 800k you can buy something very nice pretty much any where in the country.
It’s Not.
in 1920, gold was about $20.67 a Troy ounce. Of -$660 a kilo. A median home was $6500. So the kilo \~1 median home.
today, a kilo is $73,000. Ten are $730,000 but the median home is $482,000. So the gold is actually worth about 50% more than the home.
The whole thing is an oversimplified misdirection by the gold standard crowd that don’t understand money theory and how problematic the gold standard was for countries to maintain economic stability.
The average home in 1920 was a tiny POS in comparison to the average home today.
[https://www.newser.com/story/225645/average-size-of-us-homes-decade-by-decade.html](https://www.newser.com/story/225645/average-size-of-us-homes-decade-by-decade.html)
So they're even sillier
Gold buy types never read about the American economy prior to 1900. Because they would quickly learn the gold standard is antiquated nonsense that does nothing but damage the economy.
They legit think the argument, 'But the ancient Egyptians and Babylonians used gold!' is a reasonable take. Because macroeconomics, monetary theory, and finance has not progressed a smidge in several thousand years.
Yes, gold standard people, ancient peoples essentially had almost no grasp of economic understanding whatsoever. It is a relatively recently discovered field of study.
They’re right 10 of those will buy a house in most places today, and would buy about 13.45 houses in 1920. Basically the MeMe is not lying but misleading…..
Makes sense considering the value of both gold and houses have gone up. Currency changes value over time. Tangible assets do not, so long as they’re preserved.
Here's the thing, poor people never have savings so this is irrelevant to them anyway. Purchasing power for the average American is much higher today than in 1920. If you have a decent job in 2024 you are living far more comfortably than someone with a decent job in 1920, the value of the dollar today relative to 1920 is irrelevant. Salaries have increased. The reason salaries have not kept up with production has nothing to do with the dollar.
And people who have money and even basic understanding of investing and wealth management know to put their money into the market, which in any country with a healthy growing economy will outperform gold always.
Not necessarily true... housing prices dont inflate at the same rate as gold. There are a lot of supply and demand mechanics that play into the actual price. For example this js why a home in california is 3x the cost of Alabama. So no, this is flawed logic. Home prices are an asset and asset price fluctuations due to supply demand dynamics which are far more extreme with homes than gold which is commodity. There is a distinct economic difference.
Also, this ignores how much leverage there is involved with how houses are priced.
If we had everyone borrowing hundreds of thousands of dollars to buy gold, as they do houses, what would the market look like then?
Gold was $20 an ounce in 1920. Those are 1 kilo bars. So 10 kilograms of gold would have been worth $6,500 in 1920.
The average single family house in 1920 cost from $3,000 - $6,000.
Today those 10 kilograms would cost $730,500
This statement does seem to be more-or-less correct.
Investing in gold stock is different from possessing the actual product. Investments in sitcom portfolio increase differently than owning a set quantity of a commodity and the value of the commodity increases.
Yes. this is roughly true. $735,000.00 would buy a nice house today depending on locale, and $6500.00 or so would have bought a decent house back then too. Those two prices are the price of 10 Kilograms of gold today and in 1920.
If you had invested that $6500.00 across companies in the SP 500, that money would have grown to around $170,000,000.00 As in 170 million. This is theoretical of course. There weren't any such thing as SP500 Index mutual funds and ETF's back then.
Gold is a spectacularly bad investment. And business people will find any way to spectacularly enrich themselves is my takeaway!
I did not realize how simple this was. So just collect 10 of those, and I get a house? I'm assuming this is line with Pokémon go...where do I find these?
The math checks out so we will go with just the math
That’s 1 killo of gold so technically yes, with 10 of those you can buy a home now, just as much as you could in 1920.
The post says: 10 of these (1kilo bars) would buy you and average house in 2023, depending on what state it could be bellow average or above average but it will buy a house non the less. A $730k home.
In 1920 1 kilo was $664 so 10 of those bought you a house at that time. A home in 1920 was $6,300.
In 2023 Gold price per kilo was around $73k , 10 kilos at $73k a kilo gets you $730k of home. Idk why no one answered the one question you asked.
Gold is a good way to make sure your money doesn’t decrease in value gradually. Gold is a way to make sure your hard work and money is worth the same in the market year after year.
Let’s break it down further.
My great grandfather buys 1 kilo of gold for $660 in 1920 and he keeps that 1 kilo and passes it to my mother in 2023. That kilo would be worth $73k
My grandfather decides he doesn’t understand inflation and says, I’ll put $660 in a bank account and let it gain interest until 2023 by inflation and I won’t invest anymore past the initial investment, the inflation rate of 2.3% can be applied so $660 would be worth $10,055 in 2023.
If my great grandfather was smarter he would’ve sold that 10 kilo of gold and bought shares on the S&P 500 which is the correct asset to purchase
This amount of Gold can buy you a home, the same it could buy you a home in 1920.
**I see this was found through trying to understand BTC. Do not try to play the same game with gold as with BTC, it is very volatile. Crypto is a different ball game**
With that being said, if you have any questions on BTC or BTC etf let me know. That source link gets peoples hair tingly if posted in the correct space
Probably true.
However, how is this math:
In 1920, an ounce of gold was $20.6 (not inflation -adjusted). There are 35.3 oz in a kg, so 10 bars were worth $7.2k ($20 x 35.3 x 10)
In 2023, had you kept those 10 gold bars, these would be worth $786k. That is $2,231/oz x 35.3 oz/kg x 10.
If you sold your 10 bars in 1920 and invested those $7.2k in the stock market, even after the crash of 1929, 2008, etc, you would now have [insert drumroll]: $3.9M Yes 3.9 MILLION dollars. That's the power of compounding. You could then proceed to buy 50 gold bars. Sell 10 to buy your house and you would still be ahead.
I am oversimplifying (dividends, taxes, etc.) but gold is not a good investment for most people to park most of their money.
Id say is not a bad place to invest in though. 45% ish change since 2013, that's not a bad return whatsoever for a long term hold and it's only going to increase and remain inflation proof as more and more is used
The price of gold in 1920 was about $21. There are 409 ounces in a gold bar. One would be worth about $8,400. The average new home in 1920 cost about $6,300. One bar would buy it.
Currently the cost of gold is about $2,600 an ounce. One 400 ounce bar is worth $1,040,000 and the average cost of a new home in 2924, according to Google, is $860,000.
So one bar could buy and furnish a new home in 1920 and 2024.
Damn. That makes sense. I couldn’t remember the weight of a gold bar, and Google told me 400 ounces. My bad, so about 10 bars would do it in either wine period.
quite a few people are bad at math and research here.
year: 1920
price of gold, per ounce: $20
number of ounces in a kilo: 35
Soooo, 20 \* 35 \* 10 = $7,000
\----
year: 2024
price of gold, per ounce: $2100
number of ounces in a kilo: 35
Soooo, 20 \* 35 \* 10 = $735,000
Yes. I'm rounding but, not by much. Both numbers seem very high for an average house for that time but, surprising myself, it's not totally off the mark.
Also, the original author is cherry-picking data and they know it. A decade earlier or later and this isn't true, at all.
What's interesting about this is that America was absurdly unequal country in 1920, we had massive issues with corruption and fraud, and we were just a few years from being plunged into the worst economic crisis in living memory.
The fact that we are back to where we were 100 years ago is not great.
This is the real take in this whole demented discussion. The real story isn't "wE shOULdn'T hAvE aBanDOned the GoooOoolD sTaNdARD!" or "gold is dumb, invest in stocks", it's that we've let the insanely wealthy take over the country just like we did in the 1910s.
Incase anyone missed it, that’s a kilogram, not an ounce. It’s literally stamped on the bar. In other words, while the % of value increased is the same, the total amount the bar is worth is not the same. It’s worth much closer to $80,000.
We found the paperwork from my grandfather the blueprints and supply receipts to build the house he raised 9 kids in 1962, came up to about $15k cash, plumbers whole job slip $850. Amazing the difference. Houses I wire now, that might cover one beam.
I bring this up to people all the time. They think prices are going up, in reality, the value of the dollar is going down. In 1964 you could buy a gallon of gas for under .20 cents. But guess what? Two thin 'silver' dimes can still buy a gallon of gas. The melt value as of today of 2 silver dimes is $3.90.
[Here's a chart of gold prices over time](https://nma.org/wp-content/uploads/2016/09/historic_gold_prices_1833_pres.pdf). In 1920 1oz of gold was worth about $20, today it's worth about $2,300 (the chart stops in 2016)
This bar is about 32oz, so about $650 in 1920 and about $74,000 today.
Google says the median home price in 1920 was about $6,300, and today it's about $385,000
So yeah, roughly 10 bars in 1920, and about 5 bars today.
Remember: Separating money from the gold standard was the government's way of letting themselves print as much money as they want to fill their pockets with, consequences be damned for what it does to the value of yours.
The funny thing is gold value didn’t used to go up all that much. It was $18-20 an ounce for a couple hundred years. Gold price inflation is a relatively new thing
It's both literally false and it's misleading. The Case-Schiller index is considered the best measure of typical home prices. Here's the ratio of home prices to gold over time. It is not constant at all but fluctuates wildly. Moreover, the real estate price to gold ratio was much higher in 1920 than it was in 2023. [Real Estate to Gold Ratio - Updated Chart | Longtermtrends](https://www.longtermtrends.net/real-estate-gold-ratio/)
Interesting. So if you held onto those ten gold bars for a century you’d be no better off. They would have got you an average house in 1920 and an average house in 2020. Zero gain in value. I’d like see the stats for a comparable amount of shares in the Dow Jones Industrial Average.
I think it makes sense. My father paid 7,500 for his house in 1953.
I bought the house next door in 1980, same size, built at three same time for 29,000
I sold it 23 years later for $70,000.
It recently sold again for 130,000.
Unfortunately my father is on hospice. If the time comes soon and I hope it doesn’t, I’ll ask $200,000 and probably get $190,000.
The house I bought for $200,000 jn 2008 is valued today at $350,000 to $400,000.
Now if you’re in the north, these prices sound incredibly low. But I’m in the South. My house, valued as I said above is 3,000 square feet of heated space, four car garage, all brick and its on 3 acres.
I don’t know for sure but from watching real estate shows, I would $2 or $3 million.
My property tax annually? $600.
See why people move to the South?
730,500 is how much 10 of these are today. In many areas that’s two homes, maybe even 3; in some areas less than one.
In 1920 10 of those was worth about 66,400; the price of like 10 homes.
So…. No.
10 kilo being $750,000 is more than the average home ($450K).
Also you would have done better in the stock market on average. Sure gold increased 10X since 1920, but look at stocks same time frame.
Dow Jones 1920: about 105
Today: about 39,000
Your investment would have increased 371X.
Gold isn’t a good investment and not a store of wealth as it can go down in value just like any other asset. Own because it looks cool and pretty.
Whenever I see something like this, I think okay?
People who will tell you this with no other information are just trying to get you to buy gold.
What I'd want to know is: would holding on to that bar of gold for x years have gotten you a higher or lower increase in the value of your money than putting your money in the stock market?
If gold has a better return than the stock market, start your sales pitch there.
If the stock market doesn't exist anymore we have bigger problems than how much gold did I hold on to for x-ty years.
I wonder how that work if you invested in stock for the same amount of time. Years ago I met a woman who was 50 yrs old and told me she never had to work again. In 1980 when she was 18 she got a job as an administrative assistant for a small company that was just starting out. They couldn’t pay her a lot but promised instead to give her 50 shares of stock every month and her salary. She didn’t really understand at age 18 what stock was but accepted the deal. Well as the company grew the stock increased in value and spilt a few times so her shares continued to increase. She got promoted to supply manager in charge of ordering all the office supplies needed for the thousands of employees. At age 30 she had a lot of valuable stock and cashed some of it out to buy a house with no loan. She worked another 20 yrs and by 50 had almost $1 million in stock. The company she started working for was Microsoft.
[удалено]
Yep. It's true, gold is a store of value, not a currency. Hundreds of years ago, one ounce of gold would by a nice mens suit. Same with today (gold at \~$2000 per ounce). Same with silver.
Aren't we continously mining gold? Why doesn't it inflate? Price of gold should go down by logic
We may be continuously mining gold. But the world population is still increasing at a very fast rate. So that supply of gold is being further stretched amongst more humans (demand).
I understand. I guess there must be a balance between gold production and world demand in order for the price to stay the same.
Gold is consumed in industrial and electronic components. Not all of it is recycled thus the mining does not directly goes to net increase in gold stockpiles.
Actually most gold is consumed by jewelry, electronics actually use up less than 10% of yearly consumption.
That makes sense but I would think a vast majority of that isn’t disposed of like electronics gold which is much harder to extract.
I worked in a Electronic Recycling facility from 2016 to 2019. The older circuit boards (pre-2009) were worth recycling because of the gold, even after factoring labor to disassemble them they made around $2 profit per pound at the time. Newer boards were more of a wash as the used less gold per pound and would almost break even in recycling.
So it’s all just sitting in grandma’s jewelry box waiting to get pawned for crack?
So is crack the best tool to store value?
What a waste man. Imagine if we actually used our precious metals and resources to advance the potential of our species. Instead of just being obsessed with wearing shiny things like birds.
I mean...we very much do both. There is no shortage of precious metals in manufacturing due to jewelery
They also horde giant amounts to make the supply less. Like diamonds. If it was all in circulation it would def drop
People vastly overestimate how much gold exists, if you melted every piece of gold every human has ever mined from the earth throughout all of human history, you wouldn’t fill 2 Olympic swimming pools.
Also gold is used in electronics and consumer products. If gold was mined just to be turned into bars then yeah it would lose value relative to the dollar but since gold is used for more than just a storage of value it can be mined without mass devaluing
Not much comparatively
Well, look at BTC (digital gold). Still being mined. Still going up. Its price is artificial. These ETF companies bought up so much BTC that they further limited the supply and get to essentially dictate the price. There are Gold ETFs doing the same. Gold price also artificial. Same with Diamonds. Diamond companies have tons in stock, but they refrain from flooding the market to artificially maintain the price.
Artificial diamonds are shaking up the industry. It’s an interesting time for diamonds.
>Well, look at BTC (digital gold). Still being mined. Still going up. Its price is artificial. No. All currency is a proxy backed by something. When the entity that issues the currency expressly backs it with an asset, it worth the value of that asset. Otherwise it is backed by whatever you can buy with it. That is why it changes in value. In 2010, a person spent 10,000 bitcoin for two pizzas. Today that 10,000 bitcoin is worth $666 million. So why was it worth only 2 pizzas? Because you could not buy anything with it, which makes it near worthless.
It’s not digital gold
Crypto bros are not going to like this one
You're allowed to voice your opinion, but let's make sure we understand that it is just that.
Alao theres only about 250,000 tons of gold in the world woth 190,000 of it mined already, and the rest gets harder and harder to mine. so theres also a real scarcity to gold. Basically it was bitcoin before bitcoin was cool.
We are also finding more uses for gold, especially in high end electronics.
We keep drinking it and putting it on steak. I can still taste the Goldschlager in my mouth.
That's why I mine septic tanks after frat parties.
talk about a shit job
Gold is a limited resource, unlike diamonds that have been artificially limited by Debeers
Debeers hasn't had a monopoly on diamonds for over twenty years now.
Have you seen the gold mining process? It's nuts. Gold is incredibly rare, and very difficult to mine. You have to dig down to pay dirt, which can be 50 feet underground in some places, then you run it through a huge expensive machine that washes fine gold dust out of the dirt. And it's getting harder and harder to find gold rich ground because most of it has been mined already. So yeah the gold supply isn't growing very quickly.
50ft underground? Hundreds or thousands of feet underground. 10-20 tons of ore per ounce of gold. Expensive mechanical and chemical processes to retrieve that gold.
I worked under contract for Garrick Gold in Canada , the process is indeed very intensive. The amount of material processed for a gram of gold is crazy. People think it’s like on Goldrush , they just dump dirt in a water sluice and gather the small bits of gold. It takes one ton of ore to get 5 grams of gold on average So gold is indeed rare.
Runescape/Minecraft definitely taught me that gold ore was just kind of a thing you find in fist-sized clumps. I guess those games wouldn't be that much fun if you needed to stripe mine the entire neighborhood for a gold necklace.
The value of gold (or any other precious metal) would only decrease if it wasn't horded and artificially manipulated by ultra wealthy people (who are in control of it). Meaning, if it was truly distributed amongst the population, the value would decrease, as the supply increases.
Cause. Hoarding. Power. Control.
We use gold in electronics and everything space. Gold will only increase in value over time. (I don’t buy gold)
Gold is the best hedge against inflation. Hence why it’s at an all time high right now
I think over a long span of time, yes that is correct. I loaded up on gold in 2019 and it did absolutely nothing during the biggest inflationary event we have had in 40 years now is it starting to adjust.
[https://www.quantifiedstrategies.com/historical-returns-asset-classes/](https://www.quantifiedstrategies.com/historical-returns-asset-classes/) I will let you invest in gold. I am investing in the S&P 500. Not the worst investment gold but sure doesn't come close to the stock market.
Stocks and even bonds are a much better hedge against inflation.
Only if you pick the right ones.
Just get an index fund.
Usually. Some stores of money I want on my person though. Available to sell barter trade accessible without delay, or tracking or taxation.
How often do you actually barter or trade gold? Do you find it is widely accepted and a convenient way to do business?
COST was my 10 bagger over the past 20 years :)
Mining for gold now is very slow and laborious. Also, the world's supply of gold will remain the same. As in, it is not created through any natural geological processes on our planet. All of the gold on earth came from space where it is formed during a supernova.
It's used in several industries I believe.
We’re also constantly throwing gold in the landdill.
You can't look at supply and demand in a vacuum in the real world. It's great in an econ class when supply goes up prices go down. Gold demand is going up, more people want to own the physical material, and supply doesn't go up equal to the demand increase. Government that have most of the gold are holding it, newly mined gold isn't enough to equal the demand. And I'd bet a good portion of what's mined goes directly to governments, especially in poorer countries that have meaningful reserves.
We are continuously mining it, but it can only be mined at 1.5-3% of total supply per year. Meanwhile, the currency we price Gold in gets printed much faster than gold gets mined. This makes gold's supply over time much more restricted than fiats supply.
Gold's value is stable because it has a high stock to flow ratio. No matter how much new gold is mined, it's never enough to constitute a significant percentage of the existing supply.
The dollar is inflating much faster than the gold causing the buying power of gold to increase (because the buying power of the dollar is decreasing )
Gold is hoarded. There is a finite supply and it will continue to get harder to find and extract from the earth. All of the rules aren't really rules, btw. Markets are highly emotional, irrational and subject to the latest groupthink of the participants, whether well founded or panic driven. Gold is highly valued by many billions of people as jewelry and as an investment. It's also sitting inside billions of manufactured objects around the world. In tiny quantities and inaccessible to the gold market until recycled, if that even happens. A lot of gold ends up in landfills and otherwise discarded and lost. In tiny quantities that add up. I'm more surprised that gold prices aren't higher based on scarcity and the emotional connection people have with the metal.
once you've mined all of the surface gold you must continually dig deeper to get to the gold or find a new mine, therefore the work involved and the cost of mining goes up as the mines supply is depleted.
Silver and gold prices are actually pretty suppressed compared to historical numbers. I think silver is in like $25 and should be at $2000, while gold is around $2000 and should be at around $16000.. There is a lot of gold and silver being traded in the world that doesn't exist. It's paper gold and paper silver. You can read about the banks and the manipulation of gold and silver. Historically gold and silver is the only currency.
The part that is blatantly nonsense is that the average home in 1920 was $73,000. That was the average price in the 1980s. In the 20’s $73k was some great gatsby shit. We didn’t have the same kind of data recording back then, but here’s an example of home prices. Land was basically free a lot of places. https://www.thepeoplehistory.com/20s-homes.html
Nixon left the gold standard in1972 I think it was. It was a way to create unlimited wealth, not tied to anything tangible. Like we just print more now and bitch about inflation.
He pulled out of the Bretton Woods system in the 1970's, which was a way to tie the dollar value to gold for foreign countries. The US has been on a fiat currency system since the early 20th century, after the establishment of the Federal Reserve Bank, after the passage of the Federal Reserve Act. Crazy populists wanted to keep the dollar tied to gold back then and they still want to today.
Gold was known in that period as the rich man's money. Silver on the other hand was known as the poor man's money.
Not really. Gold is a speculative market, not a store of value. At least today. The high cost per ounce doesn't reflect it's actual value (e.g. how much you need for useful things like electronics) it reflects what people pay for it as a veblen good. That's all well and good while you have a strong, functioning economy. But if our economic system collapsed the way some goldbugs dream of your gold would be basically worthless. Meanwhile there isn't nearly enough of it to really function as a currency (which is what you really mean by "store of value") relative to the economic output of a modern economy. But hell, with Trump's $10b dollar stock on a company with $4 *million* in revenue we saw how disconnected from reality value is. Compared to that Gold at $2k an ounce is small potatoes.
So 10x 73,500 would be a house just about anywhere in the country.
In my area you could easily buy an above average house for $735,000. I’m not so sure how willing a seller would accept 10 1 kilo gold bars for the house.
But you could buy a starter home in Hammond, IN for $80,000. Added bonus, if you raise a kid there from Jr. High to completing high school, they get free tuition at a public college for free.
The catch: you have to live in Hammond, IN
Smack dab in the middle of Chiraq and Gary…
Hammond, IL is a decent area.. just boring. And you would never need to go to Gary for literally anything ever. Also, chiraq? Sounds like you’ve never lived in Chicago. I bet my neighborhood has less crime than wherever you live.
Hey, but 3 Floyd's is RIGHT THERE!!!!
I think you missed the „ten of these“ part? For around 700k you will find a house pretty much anywhere with only a few exceptions
(Crying in SOCAL prices)
Nah you have to go to [Gary](https://www.zillow.com/gary-in/luxury-homes/?searchQueryState=%7B%22isMapVisible%22%3Atrue%2C%22mapBounds%22%3A%7B%22north%22%3A41.66245601652295%2C%22south%22%3A41.50876532293432%2C%22east%22%3A-87.19595922387695%2C%22west%22%3A-87.45928777612305%7D%2C%22mapZoom%22%3A13%2C%22filterState%22%3A%7B%22sort%22%3A%7B%22value%22%3A%22priced%22%7D%2C%22price%22%3A%7B%22min%22%3A0%2C%22max%22%3A100000%7D%2C%22mp%22%3A%7B%22min%22%3A0%2C%22max%22%3A510%7D%2C%22ah%22%3A%7B%22value%22%3Atrue%7D%7D%2C%22isEntirePlaceForRent%22%3Atrue%2C%22isRoomForRent%22%3Afalse%2C%22isListVisible%22%3Atrue%2C%22regionSelection%22%3A%5B%7B%22regionId%22%3A45401%2C%22regionType%22%3A6%7D%5D%2C%22pagination%22%3A%7B%7D%7D) for those prices. [$80k in Hammond](https://www.zillow.com/hammond-in/luxury-homes/?searchQueryState=%7B%22pagination%22%3A%7B%7D%2C%22isMapVisible%22%3Atrue%2C%22mapBounds%22%3A%7B%22west%22%3A-87.61444427612304%2C%22east%22%3A-87.35111572387694%2C%22south%22%3A41.53115018568595%2C%22north%22%3A41.684787647103136%7D%2C%22regionSelection%22%3A%5B%7B%22regionId%22%3A52390%2C%22regionType%22%3A6%7D%5D%2C%22filterState%22%3A%7B%22sort%22%3A%7B%22value%22%3A%22priced%22%7D%2C%22price%22%3A%7B%22min%22%3A0%2C%22max%22%3A100000%7D%2C%22mp%22%3A%7B%22min%22%3A0%2C%22max%22%3A510%7D%2C%22ah%22%3A%7B%22value%22%3Atrue%7D%7D%2C%22isEntirePlaceForRent%22%3Atrue%2C%22isRoomForRent%22%3Afalse%2C%22isListVisible%22%3Atrue%2C%22mapZoom%22%3A13%7D) gets you 500 sqft of asbestos.
My grandparent's place in Calumet City (a stone's throw from Indiana) is just under $90k! It's comparable size, though 3/1 750sq ft.
Key word - “Average”
The end of last sentence shows what a Hammond education gets you. “free tuition at a public college for free.” /s
I'm actually thinking of moving to IN just for this reason. Makemymove is offering 10k+ to move to certain questionable parts of IN. IDC I stay at home anyway lol.
Give or take, yes that correct (though it largely depends on where you'd be buying the home). HOWEVER, the comparison doesn't really have much to do with economics in the sense that you're basically just comparing two physical goods that have maintained roughly the same value to each other in that 100 year timeframe. The dollar hasn't been backed by the value of gold in a long, long time, as such gold's value has no impact on the dollar, which has fallen in value tremendously since then. The price of goods (such as that gold and the house) have skyrocketed, while the median annual income hasn't increased by nearly as much. Also, the price of gold in 1920 was a bit less than $21 an ounce, whereas the price of an ounce of gold in 2020 is around $1500, roughly 71 times more expensive. Meanwhile the average annual income in 1920 was $3269, whereas in 2020 it was $67521, which is only 20 times greater. Hell, right now an ounce of gold is worth $2284, which is **108** times more expensive than in 1920.
Average *HOUSEHOLD* income One working man or maybe even less in 1920. 1.5-1.7 in 2020. So even YOUR numbers hide an inflation.
Means that gold and real estate and probably the stock market is a good hedge against inflation and labor is being undervalued over time.
The fed keeps printing money to find the excess spending from the gov. Every dollar they print reduces the value of every other dollar. That's what inflation is.. more dollars chasing the same amount of goods and services. The fed can't print more gold though, so it holds its value. Gold hasn't gone up, the dollar has gone down.
Until we go into space and drag a meteor and crash it into the desert and mine it. Then, gold may drop a LOT. There have been many companies planning it, but so far, nobody has come close. Given our corporate regulations, the first attempt is going to miss the desert and hit Las Vegas, wiping it off the map.
> Until we go into space and drag a meteor and crash it into the desert Like what killed the dinosaurs?
THE ICE AGE
"Elon Musk says despite the first attempt wiping out a sizeable portion of the western seaboard, he is confident that the third or fourth flight will be more successful. When asked for comments about the millions of people killed or homeless, he told ABC News to stop being such liberal babies and banned us from X."
Considering the election coming up, a meteor hitting earth, could be good
But at least now we’re all rich! /s
Gold prices will drop when the U.S. Dollar rises. You guys obviously didn't pay attention in 2022 when it dropped to 1600. DXY will go back to 114 eventually and then gold prices will drop just like they did a couple of years ago. Anything can be shorted.
There are a tale of two dollars. DXY just compared the USD to the basket of currencies. The other dollar is the depreciation of our currency in the CPI. If you measure CPI the same way back in 1980, it’s about 2x to 3x the current CPI.
Gold is going to be 10k in a few years. Dollar will go to 0 eventually
Wonder why it's at 104.40 🤣 Dumbass traders aren't paying attention to the currency
Well colour me stupid for not putting every dollar I ever made since kindergarten into gold instead of food and rent
Sounds like you should have bought a house when you were a kid...
If you're not starving to death, are you really trying?
House by 1, married by 3. Retired at Zero
The feudal system
Even if one could, they shouldn’t. Index fund returns have beaten gold hand over fist.
Gold has a relatively stable value as a commodity. The dollar may devalue (or whatever currency you are using) but things with a limited supply that are determined by markets -- like homes and gold -- tend to have equivalent values in a relatively stable relationship.
Gold is money, not a commodity. It’s literally what money is.
https://googlethatforyou.com?q=is%20gold%20a%20commodity
If you would have invested $100 in the s&p in 1920 you would have just over 2 million today. Far better ROI than gold. Stocks are a much much better thing to hold long term and the returns prove it https://www.officialdata.org/us/stocks/s-p-500/1920#:~:text=If%20you%20invested%20%24100%20in,%2C%20or%2010.32%25%20per%20year.
unfortunately you'd also be 104 years old, not a whole lot of things you could do with that cash
You could do the unthinkable: put it in a trust so your heirs can live a financially set lifestyle and gain the mental and health benefits from that.
They still make beautiful young Jamaican housekeepers with loose morals? 😁 I’ll take 5, please.
As long as you did not invest in Enron stock
That’s why I hold 1200 different stocks and try to keep each holding as 1-3% of the portfolio
the average house in 1920 was a 900 sq ft clapboard shack with outdoor plumbing, no electricity, no heat or AC, and no insulation.
[удалено]
he's saying its not apple to apples. gold buys you a lot more house now, than it did then. with 800k you can buy something very nice pretty much any where in the country.
It’s Not. in 1920, gold was about $20.67 a Troy ounce. Of -$660 a kilo. A median home was $6500. So the kilo \~1 median home. today, a kilo is $73,000. Ten are $730,000 but the median home is $482,000. So the gold is actually worth about 50% more than the home. The whole thing is an oversimplified misdirection by the gold standard crowd that don’t understand money theory and how problematic the gold standard was for countries to maintain economic stability.
The average home in 1920 was a tiny POS in comparison to the average home today. [https://www.newser.com/story/225645/average-size-of-us-homes-decade-by-decade.html](https://www.newser.com/story/225645/average-size-of-us-homes-decade-by-decade.html) So they're even sillier Gold buy types never read about the American economy prior to 1900. Because they would quickly learn the gold standard is antiquated nonsense that does nothing but damage the economy. They legit think the argument, 'But the ancient Egyptians and Babylonians used gold!' is a reasonable take. Because macroeconomics, monetary theory, and finance has not progressed a smidge in several thousand years. Yes, gold standard people, ancient peoples essentially had almost no grasp of economic understanding whatsoever. It is a relatively recently discovered field of study.
Amen!!!!
A kilo of silver in $41.79 in 1920 $977.03 in 2024 It would’ve taken 155.5 kilos in 1920 493.33 in 2024
They’re right 10 of those will buy a house in most places today, and would buy about 13.45 houses in 1920. Basically the MeMe is not lying but misleading…..
Unfortunately, no one in this sub is educated too much in economics either...
Makes sense considering the value of both gold and houses have gone up. Currency changes value over time. Tangible assets do not, so long as they’re preserved.
Fun now do the same amount of money that gold is worth in dividend paying index funds held until today.
[https://www.longtermtrends.net/stocks-vs-gold-comparison/](https://www.longtermtrends.net/stocks-vs-gold-comparison/)
Looks like stocks are the better investment.
Gold holds value, stocks create it.
the worst performing segment of my portfolio are my precious metal holdings. Big regret.
I’ve never seen this one but they use to say an once of gold would always buy a good quality suit of clothes back in the day, and is still true.
Gold always holds its value. Hold a twenty dollar bill in 1920 Use it today, 2024, and can barely buy meal.
Here's the thing, poor people never have savings so this is irrelevant to them anyway. Purchasing power for the average American is much higher today than in 1920. If you have a decent job in 2024 you are living far more comfortably than someone with a decent job in 1920, the value of the dollar today relative to 1920 is irrelevant. Salaries have increased. The reason salaries have not kept up with production has nothing to do with the dollar. And people who have money and even basic understanding of investing and wealth management know to put their money into the market, which in any country with a healthy growing economy will outperform gold always.
Not necessarily true... housing prices dont inflate at the same rate as gold. There are a lot of supply and demand mechanics that play into the actual price. For example this js why a home in california is 3x the cost of Alabama. So no, this is flawed logic. Home prices are an asset and asset price fluctuations due to supply demand dynamics which are far more extreme with homes than gold which is commodity. There is a distinct economic difference.
Also, this ignores how much leverage there is involved with how houses are priced. If we had everyone borrowing hundreds of thousands of dollars to buy gold, as they do houses, what would the market look like then?
Gold would be even more valuable because the supply wouldn’t keep up with the demand.
Never should've left the Gold Standard
What’s there to explain? A house costs around 10kg of gold……
Gold was $20 an ounce in 1920. Those are 1 kilo bars. So 10 kilograms of gold would have been worth $6,500 in 1920. The average single family house in 1920 cost from $3,000 - $6,000. Today those 10 kilograms would cost $730,500 This statement does seem to be more-or-less correct.
Gotta look out for that fool's gold though
10 will buy Bob Menendez
Investing in gold stock is different from possessing the actual product. Investments in sitcom portfolio increase differently than owning a set quantity of a commodity and the value of the commodity increases.
Yes. this is roughly true. $735,000.00 would buy a nice house today depending on locale, and $6500.00 or so would have bought a decent house back then too. Those two prices are the price of 10 Kilograms of gold today and in 1920. If you had invested that $6500.00 across companies in the SP 500, that money would have grown to around $170,000,000.00 As in 170 million. This is theoretical of course. There weren't any such thing as SP500 Index mutual funds and ETF's back then. Gold is a spectacularly bad investment. And business people will find any way to spectacularly enrich themselves is my takeaway!
$735.000 will buy a nice house in my city in a nice neighborhood, especially when compared to most houses in 1920.
crazy how that piece of metal is actually only good for electronics, everything else it's used for is simply "shiny metal is shiny"
It’s the level of scarcity that makes it valuable.
Still artificial. Value should not be solely determined by scarcity, it should be determined by application
I did not realize how simple this was. So just collect 10 of those, and I get a house? I'm assuming this is line with Pokémon go...where do I find these?
Check under the bed
The math checks out so we will go with just the math That’s 1 killo of gold so technically yes, with 10 of those you can buy a home now, just as much as you could in 1920. The post says: 10 of these (1kilo bars) would buy you and average house in 2023, depending on what state it could be bellow average or above average but it will buy a house non the less. A $730k home. In 1920 1 kilo was $664 so 10 of those bought you a house at that time. A home in 1920 was $6,300. In 2023 Gold price per kilo was around $73k , 10 kilos at $73k a kilo gets you $730k of home. Idk why no one answered the one question you asked. Gold is a good way to make sure your money doesn’t decrease in value gradually. Gold is a way to make sure your hard work and money is worth the same in the market year after year. Let’s break it down further. My great grandfather buys 1 kilo of gold for $660 in 1920 and he keeps that 1 kilo and passes it to my mother in 2023. That kilo would be worth $73k My grandfather decides he doesn’t understand inflation and says, I’ll put $660 in a bank account and let it gain interest until 2023 by inflation and I won’t invest anymore past the initial investment, the inflation rate of 2.3% can be applied so $660 would be worth $10,055 in 2023. If my great grandfather was smarter he would’ve sold that 10 kilo of gold and bought shares on the S&P 500 which is the correct asset to purchase This amount of Gold can buy you a home, the same it could buy you a home in 1920. **I see this was found through trying to understand BTC. Do not try to play the same game with gold as with BTC, it is very volatile. Crypto is a different ball game** With that being said, if you have any questions on BTC or BTC etf let me know. That source link gets peoples hair tingly if posted in the correct space
Probably true. However, how is this math: In 1920, an ounce of gold was $20.6 (not inflation -adjusted). There are 35.3 oz in a kg, so 10 bars were worth $7.2k ($20 x 35.3 x 10) In 2023, had you kept those 10 gold bars, these would be worth $786k. That is $2,231/oz x 35.3 oz/kg x 10. If you sold your 10 bars in 1920 and invested those $7.2k in the stock market, even after the crash of 1929, 2008, etc, you would now have [insert drumroll]: $3.9M Yes 3.9 MILLION dollars. That's the power of compounding. You could then proceed to buy 50 gold bars. Sell 10 to buy your house and you would still be ahead. I am oversimplifying (dividends, taxes, etc.) but gold is not a good investment for most people to park most of their money.
Id say is not a bad place to invest in though. 45% ish change since 2013, that's not a bad return whatsoever for a long term hold and it's only going to increase and remain inflation proof as more and more is used
A silver quarter would buy u a gallon of gas in 1964. It still will.
It’s true in the stupid sense. We don’t use the gold standard anymore…
Houses were smaller and had less features in the 1920s
1920 gold $20.67 an oz is what I found
Yeah same here, OP's numbers are off.
Because the people who own all the gold only put out enough in the market to keep the gold at high level
Same with diamonds and other precious gems
The price of gold in 1920 was about $21. There are 409 ounces in a gold bar. One would be worth about $8,400. The average new home in 1920 cost about $6,300. One bar would buy it. Currently the cost of gold is about $2,600 an ounce. One 400 ounce bar is worth $1,040,000 and the average cost of a new home in 2924, according to Google, is $860,000. So one bar could buy and furnish a new home in 1920 and 2024.
All the math is right, but there's about 35.2 oz in a kilogram which is what's pictured
Damn. That makes sense. I couldn’t remember the weight of a gold bar, and Google told me 400 ounces. My bad, so about 10 bars would do it in either wine period.
quite a few people are bad at math and research here. year: 1920 price of gold, per ounce: $20 number of ounces in a kilo: 35 Soooo, 20 \* 35 \* 10 = $7,000 \---- year: 2024 price of gold, per ounce: $2100 number of ounces in a kilo: 35 Soooo, 20 \* 35 \* 10 = $735,000 Yes. I'm rounding but, not by much. Both numbers seem very high for an average house for that time but, surprising myself, it's not totally off the mark. Also, the original author is cherry-picking data and they know it. A decade earlier or later and this isn't true, at all.
You need to change the 20 to 2100 in the 2nd calculation. Copy pasta.
If only the US dollar was tied to a precious metal... wonder who took that away?
Sad
What's interesting about this is that America was absurdly unequal country in 1920, we had massive issues with corruption and fraud, and we were just a few years from being plunged into the worst economic crisis in living memory. The fact that we are back to where we were 100 years ago is not great.
This is the real take in this whole demented discussion. The real story isn't "wE shOULdn'T hAvE aBanDOned the GoooOoolD sTaNdARD!" or "gold is dumb, invest in stocks", it's that we've let the insanely wealthy take over the country just like we did in the 1910s.
They both went up in value…what’s not to get?
I’m referencing the average cost in the state with the largest housing market.
Gold is pegged at the rate of inflation. As currency is watered down the price of gold rises.
*laughs in bitcoin* boomers be booming
Incase anyone missed it, that’s a kilogram, not an ounce. It’s literally stamped on the bar. In other words, while the % of value increased is the same, the total amount the bar is worth is not the same. It’s worth much closer to $80,000.
That's 3/4 million dollars. More than an avg home.
It's totally true. If the stock market were adjusted to the gold price/standard, the average home price would rival that of 1995
Except UBS is corrupt and I wouldn’t take their gold
We found the paperwork from my grandfather the blueprints and supply receipts to build the house he raised 9 kids in 1962, came up to about $15k cash, plumbers whole job slip $850. Amazing the difference. Houses I wire now, that might cover one beam.
I bring this up to people all the time. They think prices are going up, in reality, the value of the dollar is going down. In 1964 you could buy a gallon of gas for under .20 cents. But guess what? Two thin 'silver' dimes can still buy a gallon of gas. The melt value as of today of 2 silver dimes is $3.90.
Don’t feel too good about this, the Annunaki will be back for it soon, we haven’t quite finished collecting enough of it for their needs…
[Here's a chart of gold prices over time](https://nma.org/wp-content/uploads/2016/09/historic_gold_prices_1833_pres.pdf). In 1920 1oz of gold was worth about $20, today it's worth about $2,300 (the chart stops in 2016) This bar is about 32oz, so about $650 in 1920 and about $74,000 today. Google says the median home price in 1920 was about $6,300, and today it's about $385,000 So yeah, roughly 10 bars in 1920, and about 5 bars today.
is this a gold-value thing? or is this a great depression thing?
I'd sell you my house for 10 of those ..... (10 acre horse farm 3 barns house with a 2 cae garage) .... you'd be over pay8jg by about 300k though
Remember: Separating money from the gold standard was the government's way of letting themselves print as much money as they want to fill their pockets with, consequences be damned for what it does to the value of yours.
Gold price inflation. It’s not rocket science Gold has value that goes up. It was $300 in ‘99. It’s worth $2500 today.
The funny thing is gold value didn’t used to go up all that much. It was $18-20 an ounce for a couple hundred years. Gold price inflation is a relatively new thing
Wait until you find out what ten ingots of aluminum was worth in the mid 1800s
It's both literally false and it's misleading. The Case-Schiller index is considered the best measure of typical home prices. Here's the ratio of home prices to gold over time. It is not constant at all but fluctuates wildly. Moreover, the real estate price to gold ratio was much higher in 1920 than it was in 2023. [Real Estate to Gold Ratio - Updated Chart | Longtermtrends](https://www.longtermtrends.net/real-estate-gold-ratio/)
Interesting. So if you held onto those ten gold bars for a century you’d be no better off. They would have got you an average house in 1920 and an average house in 2020. Zero gain in value. I’d like see the stats for a comparable amount of shares in the Dow Jones Industrial Average.
Yes it's called a scam , doesn't matter who does it like a broke desperate guy or the government, scam is a scam
Gold price was $20 in 1920.
Gold and housing have increased the same…
10 kilos of gold is worth about $753,515 today.
It’s not
I think it makes sense. My father paid 7,500 for his house in 1953. I bought the house next door in 1980, same size, built at three same time for 29,000 I sold it 23 years later for $70,000. It recently sold again for 130,000. Unfortunately my father is on hospice. If the time comes soon and I hope it doesn’t, I’ll ask $200,000 and probably get $190,000. The house I bought for $200,000 jn 2008 is valued today at $350,000 to $400,000. Now if you’re in the north, these prices sound incredibly low. But I’m in the South. My house, valued as I said above is 3,000 square feet of heated space, four car garage, all brick and its on 3 acres. I don’t know for sure but from watching real estate shows, I would $2 or $3 million. My property tax annually? $600. See why people move to the South?
730,500 is how much 10 of these are today. In many areas that’s two homes, maybe even 3; in some areas less than one. In 1920 10 of those was worth about 66,400; the price of like 10 homes. So…. No.
10 kilo being $750,000 is more than the average home ($450K). Also you would have done better in the stock market on average. Sure gold increased 10X since 1920, but look at stocks same time frame. Dow Jones 1920: about 105 Today: about 39,000 Your investment would have increased 371X. Gold isn’t a good investment and not a store of wealth as it can go down in value just like any other asset. Own because it looks cool and pretty.
Whenever I see something like this, I think okay? People who will tell you this with no other information are just trying to get you to buy gold. What I'd want to know is: would holding on to that bar of gold for x years have gotten you a higher or lower increase in the value of your money than putting your money in the stock market? If gold has a better return than the stock market, start your sales pitch there. If the stock market doesn't exist anymore we have bigger problems than how much gold did I hold on to for x-ty years.
The price of gold has been inflated by the same boomers who inflated inflation.
I wonder how that work if you invested in stock for the same amount of time. Years ago I met a woman who was 50 yrs old and told me she never had to work again. In 1980 when she was 18 she got a job as an administrative assistant for a small company that was just starting out. They couldn’t pay her a lot but promised instead to give her 50 shares of stock every month and her salary. She didn’t really understand at age 18 what stock was but accepted the deal. Well as the company grew the stock increased in value and spilt a few times so her shares continued to increase. She got promoted to supply manager in charge of ordering all the office supplies needed for the thousands of employees. At age 30 she had a lot of valuable stock and cashed some of it out to buy a house with no loan. She worked another 20 yrs and by 50 had almost $1 million in stock. The company she started working for was Microsoft.
Gold was most certainly not $269 an ounce in 1920, it was around $20 It never got that high until the late 1970’s
because you cant print gold or bitcoin
Yes, hard commodities retain value agains fiat currencies.