Let this sink in for a second
In 1929 the price of a troy ounce of gold was $20. There are 32.15 ozt per 1kg bar, so that equals $6,430 for 10kg of gold.
Today on April 8th 2024 at 9:33PM EDT an ounce of gold is $2,344.90 per troy ounce. That equals $753,885.35 for 10kg of gold.
The average home price in the USA in 1929 was $4,902. So 10kg of gold would have gotten you nice size home.
The average home price in the USA today is $412,095. So 10kg of gold would get you a nice size home today as well.
Its not that gold has gone up in value, its that the dollar has lost 99.14% of its purchasing power since 1929 due to the printing and expansion of the currency supply.
Property values didnβt go up by 840.67%, the dollar lost that much purchasing power over the 95 years.
It's always hard to judge anything from 100 years ago.
Home prices doubling since the 2009 housing crash, for example, are a better sign of money printing causing loss of purchase power.
