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Interesting fact: 100usd in 1969 bought you nearly 3 ounces of gold. Price of gold today is 1350usd. Today's value of 100usd in 1969 would be about $4k. Not bad

Interesting fact: 100usd in 1969 bought you nearly 3 ounces of gold. Price of gold today is 1350usd. Today's value of 100usd in 1969 would be about $4k. Not bad at all.

GFischer 13y ago
100 USD from 1969 would be equivalent to 636 USD today. So it would have been a great buy, but you have to take inflation into account. Also, 100 USD from 1969 invested in the stock market (S&P 500) in 1969 would have given you 5403 USD from 2013 today, so buying those ounces wouldn't even have been the best investment. Almost any solid investment over 50 years would give absurd returns. http://www.usinflationcalculator.com/ http://www.usinflationcalculator.com/ Edit: source for the S&P quote: http://www.moneychimp.com/features/market_cagr.htm http://www.moneychimp.com/features/market_cagr.htm
- LekkoscPiwa 13y ago
  In my book equating for inflation is simply representing price in gold. I.e. did you know that the oil price for the past 50 years is the same if you use gold to measure it? Flat line. The same goes for the cost of living, etc. Salaries are down though. Here is your inflation. Gold isn't an investment. Gold is just a currency that can't be created out of thin air. It represents energy and labor needed to get it out of the ground. Currently the mining cost is about $1,200 with gold price about $1,300. That's why looks worse than S&P the price is as low as the production cost at the moment. If you are interested in the real inflation rate, I'd advise to use formula that was last used by the US Government in 1980s in Reagan years. By that formula the current inflation is at 10%. In 1990s the Government added a lot of absurdities to the formula confusing technological progress with inflation hence the official inflation is non-existent while the average healthcare premium is up from 5 to 20% every year not to even mention about the cost of necessities like gas, food, energy, all the result of doubling monetary base by the FED in 2008-2012 to rescue zombie banks.

Interesting fact: 100usd in 1969 bought you nearly 3 ounces of gold. Price of gold today is 1350usd. Today's value of 100usd in 1969 would be about $4k. Not bad at all.

GFischer 13y ago

100 USD from 1969 would be equivalent to 636 USD today. So it would have been a great buy, but you have to take inflation into account. Also, 100 USD from 1969 invested in the stock market (S&P 500) in 1969 would have given you 5403 USD from 2013 today, so buying those ounces wouldn't even have been the best investment. Almost any solid investment over 50 years would give absurd returns. http://www.usinflationcalculator.com/ http://www.usinflationcalculator.com/ Edit: source for the S&P quote: http://www.moneychimp.com/features/market_cagr.htm http://www.moneychimp.com/features/market_cagr.htm

LekkoscPiwa 13y ago
In my book equating for inflation is simply representing price in gold. I.e. did you know that the oil price for the past 50 years is the same if you use gold to measure it? Flat line. The same goes for the cost of living, etc. Salaries are down though. Here is your inflation. Gold isn't an investment. Gold is just a currency that can't be created out of thin air. It represents energy and labor needed to get it out of the ground. Currently the mining cost is about $1,200 with gold price about $1,300. That's why looks worse than S&P the price is as low as the production cost at the moment. If you are interested in the real inflation rate, I'd advise to use formula that was last used by the US Government in 1980s in Reagan years. By that formula the current inflation is at 10%. In 1990s the Government added a lot of absurdities to the formula confusing technological progress with inflation hence the official inflation is non-existent while the average healthcare premium is up from 5 to 20% every year not to even mention about the cost of necessities like gas, food, energy, all the result of doubling monetary base by the FED in 2008-2012 to rescue zombie banks.