“Absolutely. I know it sounds ridiculous, but don’t forget that back in the 1930s it was (around) $21 an ounce. No one would ever have believed that 80 years later we would have gold trading anywhere near $1,900 an ounce, but that’s what happened. “
I really really wish that those who start talking dollars would talk in terms of a constant dollar. Twentynine 1930 dollars vs 1900 2012 dollars?
Constant dollars are tricky over many years. Search engines yield many attempts.
An ounce of gold historically bought a very good men’s suit, or somewhat less than a monthly wage for a low-level employee.
Looks like those prices are still comparable.
yes, gold is the measure.
in the current context, $21/troy ounce in the 30’s now is
say $1650/troy ounce.
Gold is the constant, the $ is the variable.
mwasures