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The real value of money


User ID: 79280147
United States
03/19/2021 03:04 PM

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The real value of money
I know the vast majority of GLP'ers know this, but I find myself having to go over this with people more and more when talking about prices and investments.

The price of GOLD (and other assets) goes up and down, but the VALUE doesn't. An ounce of GOLD is no more valuable than it was in 1933 when Roosevelt snatched up the gold for $20.67 an ounce (about $500 in today's dollars - he got a bargain).

The actual price of an ounce of Gold in 1933 was about $35. This means the value of the US Dollar was 1/35th of an ounce of Gold.

Today, the price is $1,750, which means a US Dollar is worth 1/1750th of an ounce of Gold.

1933 - US Dollar = .028 ounce of Gold
2021 - US Dollar = .00057 ounce of Gold

People can look at old catalogs and the prices of things, and think "WOW things are more valuable today." Nope. It takes more dollars to buy them, because the dollars are worth less.

Unfortunately, the Biden administration is doing everything it can to remove the space between those two words.

Last Edited by IAMTHATGUY on 03/19/2021 03:05 PM
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