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<p>[QUOTE=&quot;Collector1966, post: 731606, member: 17919&quot;]<b>Inflation and gold</b></p><p><br /></p><p><br /></p><p><br /></p><p>What are you using as a basis year for the inflation rate?</p><p>In 1932, gold was 20.67 per ounce. According to the inflation calculator</p><p><br /></p><p><a href="http://www.westegg.com/inflation/infl.cgi" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://www.westegg.com/inflation/infl.cgi" rel="nofollow">http://www.westegg.com/inflation/infl.cgi</a></p><p><br /></p><p>one dollar in 1932 would be equal to 15.62 today. Multiplying 20.67 by 15.62 gives $322.88, which would be the inflation-adjusted price of gold per ounce today. One dollar in 1970, when gold was $35 per ounce, would have the equivalent purchasing power of $5.49 today. Multiplying 35 by $5.49 gives $192.15. So, between 1932 and 1970, gold underperformed the inflation rate. But those were unusual circumstances, because the possession of gold bullion was restricted during that time. But since that time, after the restrictions on gold bullion possession were completely lifted, gold began to rise. Since that time, the price has fluctuated, but today&#039;s price of more than $1000 is far outpacing the inflation rate-adjusted gold price of $192.15.[/QUOTE]</p><p><br /></p>

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