4 ms·

I would invite you to look at gold prices over the last 20 years. I only wish I could go back in time and tell my 20 year old self to buy lots of it back when

I would invite you to look at gold prices over the last 20 years. I only wish I could go back in time and tell my 20 year old self to buy lots of it back when it was in the $300/toz range. Right now it's sitting pretty at $1351/toz.

Mikeb85 13y ago
And oil prices have gone up just as much. Once upon a time oil was a dollar a barrel... Come on, inflation increases the value of all commodities, gold, silver, oil, corn, wheat, etc... It's not like gold is special.
- jayfuerstenberg 13y ago
  Gold is special. It's easier to carry than a barrel of oil, and stays fresher longer than a bunch of corn or wheat. That's why gold tends to get used as money over and over in history. But you're right about one thing... inflation increases the value of real assets. Or to put it better, the value of real things doesn't change (a loaf of bread is a loaf of bread) but the value of the dollar weakens in regards to it with inflation. Bringing us back to the beginning of the argument that inflation steals the purchasing power of people. If I bought gold 20 years back I would have paid $300 for 1 toz. That same 1 toz of gold today costs me $1351. The gold hasn't changed. The US$'s purchasing power has. [EDIT: I should mention that inflation isn't the sole reason it takes more money to buy gold than 20 years ago. There are of course some other factors.]
  - Mikeb85 13y ago
    > [EDIT: I should mention that inflation isn't the sole reason it takes more money to buy gold than 20 years ago. There are of course some other factors.] Alot of other factors. Like the fact that gold is widely used in electronic circuits, and not just for bling now. This of course will increase demand for it, beyond its use as a 'hard' currency... >Bringing us back to the beginning of the argument that inflation steals the purchasing power of people. It does, but wages have historically followed inflation, as historic data shows, leaving the average person no worse off (unless their only asset is a pile of cash under their mattress...).
- sliverstorm 13y ago
  Gold is shiny though. How could it not be special?
  - girvo 13y ago
    Yeesh, goldbugs make me giggle sometimes. It is a pretty cool (pun) metal though, I'll give them that.
nerfhammer 13y ago
Just don't go too far and look at gold prices from 35 years ago. http://static.seekingalpha.com/uploads/2010/3/19/saupload_gold_inflation.png http://static.seekingalpha.com/uploads/2010/3/19/saupload_go...
- nullc 13y ago
  I don't really know much about gold, but that chart is a little questionable: from 1934 to ~1975 private ownership or trade of gold was restricted by law in the US.
  - nerfhammer 13y ago
    how does that make the 1980's gold bubble "questionable"?

Mikeb85 13y ago

And oil prices have gone up just as much. Once upon a time oil was a dollar a barrel... Come on, inflation increases the value of all commodities, gold, silver, oil, corn, wheat, etc... It's not like gold is special.

jayfuerstenberg 13y ago
Gold is special. It's easier to carry than a barrel of oil, and stays fresher longer than a bunch of corn or wheat. That's why gold tends to get used as money over and over in history. But you're right about one thing... inflation increases the value of real assets. Or to put it better, the value of real things doesn't change (a loaf of bread is a loaf of bread) but the value of the dollar weakens in regards to it with inflation. Bringing us back to the beginning of the argument that inflation steals the purchasing power of people. If I bought gold 20 years back I would have paid $300 for 1 toz. That same 1 toz of gold today costs me $1351. The gold hasn't changed. The US$'s purchasing power has. [EDIT: I should mention that inflation isn't the sole reason it takes more money to buy gold than 20 years ago. There are of course some other factors.]
- Mikeb85 13y ago
  > [EDIT: I should mention that inflation isn't the sole reason it takes more money to buy gold than 20 years ago. There are of course some other factors.] Alot of other factors. Like the fact that gold is widely used in electronic circuits, and not just for bling now. This of course will increase demand for it, beyond its use as a 'hard' currency... >Bringing us back to the beginning of the argument that inflation steals the purchasing power of people. It does, but wages have historically followed inflation, as historic data shows, leaving the average person no worse off (unless their only asset is a pile of cash under their mattress...).
sliverstorm 13y ago
Gold is shiny though. How could it not be special?
- girvo 13y ago
  Yeesh, goldbugs make me giggle sometimes. It is a pretty cool (pun) metal though, I'll give them that.

nerfhammer 13y ago

Just don't go too far and look at gold prices from 35 years ago. http://static.seekingalpha.com/uploads/2010/3/19/saupload_gold_inflation.png http://static.seekingalpha.com/uploads/2010/3/19/saupload_go...

nullc 13y ago
I don't really know much about gold, but that chart is a little questionable: from 1934 to ~1975 private ownership or trade of gold was restricted by law in the US.
- nerfhammer 13y ago
  how does that make the 1980's gold bubble "questionable"?