are y'all better off than you were 4 years ago ?

[hemet dennis]

You are trying to compare golds worth to how much money it will trade for. Its worth has nothing to do with money. Gold is not up to $30 an oz, more like money is down to $30 an oz.

An the total number is around $1700 an oz. $30 is less than a 2% change.


Silver is going for $32 an oz.

What really matter is how much gold does it take to trade for X amount of product. There is fluctuations but generally an oz of gold still buys around about the same products as it did in the 1960. A US$ will not do that.

If you go to a gold standard then the worth of gold is the same as the worth of money. If you tie the dollar to chickens and start with 2 chickens to the dollar then the value of chickens goes up the value of the dollar will go up.
If we kept the gold standard then you could exchange $34 for an oz. of gold but the government would have to pay $1700 to get that oz. How long would the government last at that rate ?
You're asking to go back to a system that doesn't work.

 

[Matthew3590]

"Don't boo, Go vote, The ultimate revenge"- Obama

 

[rebelcowboysnb]

Quote:
The reason gold is used is cause it has value an has become stable. I dont where you get that $34 per ounce exchange rate. An the only reason the gold standard "did not work" is cause the fed got caught printing more money than it had the gold to back it with. They were trying to hide spending threw inflation an printing an the gold exchange was giving them away.

 

[hemet dennis]

The reason gold is used is cause it has value an has become stable. I dont where you get that $34 per ounce exchange rate. An the only reason the gold standard "did not work" is cause the fed got caught printing more money than it had the gold to back it with. They were trying to hide spending threw inflation an printing an the gold exchange was giving them away.

As the chart shows gold isn't stable. The $32 was the exchange rate. Why is gold worth over $1700 an oz. Would you rather have a new car or 17 ounces of gold ? Or a cow or an oz. of gold ? Gold is one of the most useless things. There's a few things that it's good to use for. Most of golds value is artificial. That's why most of the gold supply is in vaults.

 

[ChemicalchiCkns]

I believe I am, but to answer the implied Question, I do not know what part Politics play'd in it.

 

[rebelcowboysnb]

Quote: That chart only shows that the UD$ is not stable. You are still comparing the worth of gold to the worth of a US$. Your chart proves the point that everything was stable up until we went off the gold standard. Then the value of money fell making it cost way more to buy anything. You are so set on the idea that gold is fluctuating that you cant see that the US$ is what is actually fluctuating. If we were still on the gold standard then yes the exchange rate would still be about $32, your chart would be a flat line an one man could still work an raise a family without needing his wife an kids to all get jobs just to keep the same standard of living we had in the 60s.

Golds value is not artificial, its cause there is not much of it. Moneys value is artificial. I would take the 17 oz of gold over a new car any day. Dont know about the cow. I do know I would take any of it over some worthless peaces of paper that they are printing so fast it takes machines just to watch for errors.

An gold is in vaults cause people want it so bad it has to be protected.

Here a chart that better shows what the dollar will buy.

 

[rikithemonk]

What really matter is how much gold does it take to trade for X amount of product. There is fluctuations but generally an oz of gold still buys around about the same products as it did in the 1960. A US$ will not do that.

My point exactly.

Riki

 

[rikithemonk]

As the chart shows gold isn't stable. The $32 was the exchange rate. Why is gold worth over $1700 an oz. Would you rather have a new car or 17 ounces of gold ? Or a cow or an oz. of gold ? Gold is one of the most useless things. There's a few things that it's good to use for. Most of golds value is artificial. That's why most of the gold supply is in vaults.

The Black line in that chart is real, I have seen that representation before and to the best of my knowledge its accurate. However, just a little thought will clearly show you that the red line cant possibly be correct.

Look at what it actually says, there is absolutely no possible way that adjusted to 2011 monetary values that 1980 would be that high. In the three years from 1977 to 1980 the purchasing power of gold went from $400 ounce to $2466. So according to the chart $130 was equivalent to $400 in 2011 and just three years later $850 was equivalent to $2466. Then in a year the price of gold goes up $200 while the equivalent buying power drops $1066 over night. That's absurd. The cost of goods would have had to have dropped to ridiculous lows for that to even be remotely true, then they would have had to have rocketed up in price an obscene amount. That would be like going to the store for a can of soda at 50 cents, then having it cost 3 cents a year later, then find it costing 3 dollars the year after that.

That's absurd

Regardless of any other argument you could nit pick on this chart, there is no possible way that gold in 1980 had $766 more purchasing power than it does now, 32 years later.

In 1980

[FONT=Arial, Helvetica, sans-serif]Cost of a new home: [/FONT]​

[FONT=Arial, Helvetica, sans-serif]$76,400.00 [/FONT]

[FONT=Arial, Helvetica, sans-serif]Cost of a new car: [/FONT]​

[FONT=Arial, Helvetica, sans-serif]$ 7,210.00[/FONT]

[FONT=Arial, Helvetica, sans-serif]Median Household Income: [/FONT]​

[FONT=Arial, Helvetica, sans-serif]$17,710.00 [/FONT]

[FONT=Arial, Helvetica, sans-serif]Cost of a first-class stamp: [/FONT]​

[FONT=Arial, Helvetica, sans-serif]$0.15 [/FONT]

[FONT=Arial, Helvetica, sans-serif]Cost of a gallon of regular gas: [/FONT]​

[FONT=Arial, Helvetica, sans-serif]$1.25 [/FONT]

[FONT=Arial, Helvetica, sans-serif]Cost of a dozen eggs: [/FONT]​

[FONT=Arial, Helvetica, sans-serif]$0.91 [/FONT]

[FONT=Arial, Helvetica, sans-serif]Cost of a gallon of Milk: [/FONT]​

[FONT=Arial, Helvetica, sans-serif]$1.80 [/FONT]​

 

[hemet dennis]

That chart only shows that the UD$ is not stable. You are still comparing the worth of gold to the worth of a US$. Your chart proves the point that everything was stable up until we went off the gold standard. Then the value of money fell making it cost way more to buy anything. You are so set on the idea that gold is fluctuating that you cant see that the US$ is what is actually fluctuating. If we were still on the gold standard then yes the exchange rate would still be about $32, your chart would be a flat line an one man could still work an raise a family without needing his wife an kids to all get jobs just to keep the same standard of living we had in the 60s.

Golds value is not artificial, its cause there is not much of it. Moneys value is artificial. I would take the 17 oz of gold over a new car any day. Dont know about the cow. I do know I would take any of it over some worthless peaces of paper that they are printing so fast it takes machines just to watch for errors.

An gold is in vaults cause people want it so bad it has to be protected.

Here a chart that better shows what the dollar will buy.

Your chart isn't right it's upside down and it should show the value of gold not dollars.
Lets look at something like T.V.'s. A 1958 black and white 21 inch one would have cost you $350 to $400 now you can buy a color cable ready 30 inch for about $300. But if you look at it a different way how long would the average worker have to work in 1958 to earn $350 ? It would take more then a month now less then a week. Take cars the average worker would need to work about a year and a half for a new car and now less then a year.
In 1958 how many poor families had a T.V. ? Now most poor families have 2 T.V.'s.

One man can still work one job and still have the same standard of living we had in the 60s but the average standard has gone up. The average worker had to work almost a half day for a pound of round steak in 1958 and now less then an hour.
Gold only has the value of what people think it does. You say gold has value because there's not much of it. What's the value of a moon rock on earth ? We could really raise the value of the dollar if we went to a moon rock standard. LOL

If we were on a gold standard other countries could raise or lower the dollars value just by with holding or dumping gold.

 

[rebelcowboysnb]

Next you will compare the price of a 1800s buggy with 2012 Porsche. The $400 TV is the $2K Mac book pro today. You cant compare a TV then an a TV now. Food, housing, land, pay all can be compared but using a new innovation to compared to its self years later is no where near accurate when rating monetary power.

An that chart is accurate.




FYI, using your $ standard, a last price I saw on a space rock was $6K for a bolder. an about $45 for a pebble.