Thursday, March 25, 2010

The numbers , gold versus the dollar

As promised, this is the purchasing power of gold versus dollars:

According to the Minneapolis Federal Reserve, since 1935, the dollar has lost 93.5% of its purchasing power.

But take a look at the purchasing power of gold:

In 1935, when an ounce of gold was worth $35, you could buy:
*a top-quality tailored suit for $19.75 – or 0.56 ounces of gold
*a family car for $500 – or 14.3 ounces of gold
*a house for $7,150 – or 204.2 ounces of gold

Today, with gold at $1,060 an ounce:
*that same top-quality, tailored suit costs $600 – or 0.56 ounces of gold
*the family car now costs $15,000 – or 14.2 ounces of gold
*the house averages $181,100* – or 204.6 ounces of gold

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