Re: Falling Dominoes Rising Gold

EskWIRED@xxxxxxxxxxxxxxxxxxx wrote:
In misc.survivalism, Winston_Smith <not_real@xxxxxxxxx> wrote:
On Wed, 19 Mar 2008 02:01:58 +0000 (UTC), EskWIRED@xxxxxxxxxxxxxxxxxxx
wrote:

In misc.survivalism, Winston_Smith <not_real@xxxxxxxxx> wrote:

No. Robert Sturgeon wrote:

Appy Pollie Loggies.


The gold and silver IS stable - very stable - in terms of what it can
buy.

Tell that to the guy who bought in 1979.


When converted into some other form of wealth/currency, the
transfer ratio changes - principally reflecting the fluctuations of
whatever is being compared to gold.

And the old saw about an ounce of gold being equal in value to a man's suit, all throughout the ages? Doesn't that mean that gold is now grossly overpriced?

No. It's grossly underpriced. In terms of house, automobile,
quality firearm, barrels of oil, pounds of turnips, etc, it should be
around $2,000/ounce. I suspect it will be before we expect it.

How do you arrive at that? Agricultural products are produced MUCH more cheaply now than in the past. Back in the days when gold was accepted in payment, back when pretty much the entire labor force was engaged in food production, it would buy MANY fewer pounds of turnips compared with today.

And why do you ignore the classic "one ounce of gold = a man's suit of clothes" shibolleth? Is it too obvious that it is false?

It's obvious. Check the prices in old newspapers and catalogs.

1927 - 1931

A hand sewn custom silk suit made by Chinese tailors is $20.

Gold is about $20 an ounce
Silver averaged about 42 cents an ounce.

* A nice LA home on a 1/2 acre lot is appraised at $10,000
* It cost fifty cents to get into the Savoy Ballroom
* A steak sandwich at the Cotton Club cost $1.25
* You could buy a record for $0.39
* A raccoon coat would set you back $39.50
* A console radio was $72.50
* 1927 Sears Catalogue suit is $3.50
* A typical man's suit (Coat, Vest, 2 Pr. Pants) was $15.85
* A very nice suit is $20
* A new model T Ford goes for $650
* An new Oldsmobile is $900
* Average working man's annual wage was $1700
* A professional made from $3000 and up

These were typical costs throughout the 1920s and early 1930s.



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