Let’s trace what an ounce of gold or silver – true money – has been able to purchase at various periods in history, and how it compares to today.
1979: Gold’s average price that year was $306.68. This bought an average-priced full size bed.
30 years later, $950 would still buy you a full size bed.
1963: A gallon of gasoline in America sold for 31 cents. This meant that 3 silver dimes could buy a gallon of gasoline. The total weight of silver in 3 silver dimes is .217 of an ounce.
Today, 3 silver dimes would buy a gallon of gasoline anywhere in the U.S.
600 AD: In the Middle East, a chicken at the time of Mohammad would cost a family one silver Dirham (3 grams).
Today, 1,400 years later, a chicken in the Middle East would still cost a family one silver Dirham.
Time of Christ: Under the Roman Empire, an ounce of gold purchased a Roman citizen his toga (suit), a leather belt, and a pair of sandals.
Today, one ounce of gold will still buy a man a suit, a leather belt, and a pair of shoes.
400 BC: Some scholars report that during the reign of King Nebuchadnezzar, an ounce of gold bought 350 loaves of bread.
Today, an ounce of gold still buys about 350 loaves ($950 divided by 350 = $2.73/loaf).
1000 BC: King Solomon was known to have purchased many horses for his army. Historical records show he bought them in Egypt for 150 shekels of silver each. 150 shekels was about 55 troy ounces of silver.
Today, you can still buy a riding horse for 55 troy ounces of silver ($800).
Betsy, gold has characteristics no other matter on earth has...
Tuesday, June 12, 2012
The value of gold and silver
Then and now. Some comparisons from InflationData.com.