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I see he is using a typical inflation-adjusted graph to show the historical price of oil. It's interesting to also see the historical ratio between oil and gold
by oofabz 11y ago
I see he is using a typical inflation-adjusted graph to show the historical price of oil. It's interesting to also see the historical ratio between oil and gold prices as an alternative way to compensate for inflation. The oil/gold ratio has been much more consistent, perhaps because errors in our inflation estimates add up over time.
https://www.wolframalpha.com/input/?i=price+of+oil+%2F+price+of+gold https://www.wolframalpha.com/input/?i=price+of+oil+%2F+price...
- danmaz74 11y ago> gold prices as an alternative way to compensate for inflation The price of gold is in no way an alternative to compensate for inflation. I mean, at least for those countries where consumers don't use most of their money to buy gold.
- seizethecheese 11y agoThe graph generated in your link fluctuates wildly between 0.05 and 0.15. Relying on this for inflation adjustments would be catastrophic.
- deleted 11y ago[deleted]
- refurb 11y agoHow can gold be used as an indicator of inflation? Gold went up by almost 50% during the 2008 crisis and has dropped by 1/3 since it's peak. If we use the price of gold as an indicator of inflation that would mean we a huge inflationary spike followed by a severe deflationary period?