That's not especially helpful, though, because depending on your definition of "very nice," a "very nice" suit could cost anywhere between $200 and several thousand dollars.
Maybe a more accurate way to look at it is, how many loaves of bread would a $20 ounce of gold buy before 1933? Lets say a loaf of bread cost 0.10 cents at that time. Maybe high, but we'll say 0.10 cents. 1932: 1 oz of gold = 200 loaves of bread. Now a loaf of bread is around $3.50. Gold down at 905 today. 3/04/2009: 1 oz of gold = 258 loaves of bread. 1932: $1 = 10 loaves of bread 2009: $1 = 1/3 > of a loaf
Everything depends on the starting point and ending point. On September 8, 1933 the price of gold was raised to $29.82 per ounce from $20.67. No single calculation will be perfect, but in general gold has maintained approximately the same purchasing power.
More power to you That's not especially helpful, though, because depending on your definition of "very nice," a "very nice" suit could cost anywhere between $200 and several thousand dollars. If you can get a very nice suit for $200 then go for it but don't expect to be invited to many formal get together's. If all I was going to spend on a very nice suit is $200 I would wear sweat pants and stay home good golly those are 1969 prices. Gosh it was just an analogy that pretty much holds true - it don't have to be exact. Relax,,,,,
How about computing power? How much computing power did an oz of gold buy in 1990 compared to today? I bet you could buy a lot more computing power today with an oz of gold.
It might take longer to have faith for the cosumer and investor. Unless we get what was promised, Americans will be very timid. Trading dollars, or gold in for funds or the securties market might be very slow in returning. Look at the last depression. The dow is down 20% since 1/1/2009 .
Computing power is far far cheaper than it was in 1990, there is no comparison. I have more memory on my camera's memory stick than I had on my first PC.
I agree things like cell phones, computers, and TV's aren't legit to compare there are a few things that people always need. Food, Shelter and clothing. If your are going to compare always use things people need. These things will always be bought and be a fair comparison. People don't buy new cars in a down market. Ice
okay i will tell you guys something you dont know the gold market will crash in 2013/2014 and it will never be the same again. King Spocks prophecies
I'm expecting the dollar to crash. When our runaway inflation hits and we're eventually forced into the NWO currency to survive. At that point, the powers that be can say you need to trade in your U.S. dollars for your global currency and they're worth 50% of what they were before. What's anybody going to do? The rich will still be rich. Gold will beat it. Nobody could do anything to stop this. If things get bad enough, the country will be begging for it. I don't want this to happen but this is very feasible in the next 10 years or less. The Fed is keeping it secret concerning which banks are receiving funds for fear that the public will panic and pull their money out of them. Fox Business has a lawsuit against them trying to get an answer where our tax dollars went. The head of FDIC came out yesterday and said if they don't raise fees on banks, their insurance may become insolvent this year! They expect many more bank failures through 2010 and they expect their balance will approach zero or go negative in that time if something isn't done soon! What'd they do the last time this happened? They inflated the currency. So what makes anyone think they won't do it again? At that point, do you want a pile of U.S. dollars or a pile of gold? Say we don't go to a global currency but we do switch to an Amero. Same result. We're just left keeping our fingers crossed as to how much they devalue the dollar. I fully expect people to disregard all of this as a conspiracy theory in order to stay in their comfort zones. Despite the fact that this has already happened.
Well the FDIC won't let the banks fail, they will just create more money and all is good... except that all that inflated money will have an eroding aspect on the dollar, but not just the dollar, but also the Yuan, the Euro, the Sterling etc. Then you can expect that China, you know, that country with $700 Billion in US Treasury notes will call them and want them cashed out immediately further contributing to the demise of the once almighty dollar. And the Fed via the Treasury will keep throwing semi good money after bad, flushing it all down the toilet of AIG, Citigroup and BofA. It is a vicious cycle, and frankly, the press is whitewashing the severity of the situation, but we are in a financial crisis that could make the Great Depression of the 1930's look relatively timid.
Our ability to produce those other things is enhanced by the technology, it is all pretty inter-related. I saw a migrant worker sitting in the bed of a pickup talking on a cell phone a while back. In a very real way he has more power than all of the kings of old. Money literally becomes a different substance when its purchasing power creates the opportunity to have powers beyond what it used to do. In other words a 1960's dollar could not buy you a cell phone therefore it is not comparable to a 2000's dollar, they simply are not in any way the same thing.
Have to agree. I would bet there's been plenty of high level meetings with the press concerning what's appropriate to report on and what isn't. I don't think they're covering bank failures anymore because they don't want to incite panic. Which, maybe that's the right thing to do. Doesn't mean they aren't happening. People need to realize that they're going to have to rely on themselves for information and analysis of the situation. No matter how bad it gets or for how long, they're going to keep trying to instill confidence in people all the way down. That's all the government and the media can do whether it's true or not. Lets just say barring a miracle or some radical new technology, our best case, long term scenario, isn't looking too good right now.
US Treasury securities are non-callable. Maybe you meant to say the Chinese won't roll them over at maturity over a period of years. Then they will have a pile of cash earning no return which will have to be reinvested in the US. This will drive up common stock and property values similar to the way the dollar recycling by Japan drove up stock and property prices in the 1980s. The only other alternative would be to sell them to another central bank that wants dollars so they can do business here. The banking system has many problems, but the Chinese aren't really one of them.
So with gold closing down at around 918, is it a buying time or time to unload? I've been reading so much information that you can be talked into either direction. Just want your thoughts? I think its a buying time for silver if I could just find it.