FWIW 20.67 in 1933 was equivalent to 512.42 today.
Misleading, you can’t make an inflation speculation from price of a single asset. This is why central banks have “inflation basket”.
Especially gold, not really priced as a commodity, reflects global risks etc. It’s more of an investment asset. Not really priced based on the industrial demand.
Now put 2 stacks for median income now and then
And?
1. this is not inflation
2. it’s barely an ok return investment wise
3. I actually have no idea what this pic is trying to show
This is an example of someone who doesn’t understand much, but just enough to prove their ignorance.
A currency is supposed to be a median of exchange not a long term store of value.
There’s a lot more than $3xxx on the left cash pile
[deleted]
The U.S. is no longer on the Gold Standard. The value of the two don’t much together.
Supply and demand pushes the value of Gold. While GDP and Bond investments globally push the value of the dollar.
I’m more of a hands on guy, when it comes to learning. I think I may need to get my hands on this to truly grasp the concept…
This is a picture to show an example of currency inflation: a commodity’s change in value over time, as the currency loses purchasing power
This entire comment section: This is NOT inflation, and gold is a bad investment
It’s already at 3k???
I joined like 3 years ago the silver and gold community and gold was at 1.5k
Now do it for computers!
A dummy would use a single commodity, gold in this case, as the comparison point.
That stack on the left looks like it is only $1,800.
Can we include what the additional income was by using the central banking system? I would assume we have a big bonus there to be able to operate in a deficit.
The same principle can be applied to BITCOIN! 👍
1oz gold =
4.3% of 2025 median income
5.5% of 1933 median income
Measured as a fraction of personal income, gold has devalued 22% in 92 years.
That’s only accurate if you equate the amount of dollars produced and that are in circulation, the state of the economy and the growing populous from then to now
That’s pennies. Do this with Bitcoin.
It should be self evident that you can’t have an increase in the Standard of Living without inflation.
$20 Gold coin invested in the stock market in 1933 sp500 would be impossible to fit in the picture, at ~$180,000
Using gold distorts the inflation picture a bit, since it is only, in the end, a commodity with its own valuation factors. (Plenty more has been mined since 1933.)
Actual inflation is worse – $1 in 1933 is $250 in today’s dollars. (so $20 -> $5000)
Gold and silver are real money , the dollar is a paper IOU . All fiat is paper , if it’s not backed with something. Basell 3 is coming , there have been two tier one assets since around ww2 , US treasury bonds and US dollars, in 2019 they added gold. This is why gold prices have been going up in the last 5 years and will continue to do so. Countries and banking institutions are buying it at high levels.
Well there is also this: Executive Order 6102 signed on April 5, 1933, by US President Franklin D. Roosevelt “forbidding the hoarding of gold coin, gold bullion, and gold certificates within the continental United States.”
26 comments
FWIW 20.67 in 1933 was equivalent to 512.42 today.
Misleading, you can’t make an inflation speculation from price of a single asset. This is why central banks have “inflation basket”.
Especially gold, not really priced as a commodity, reflects global risks etc. It’s more of an investment asset. Not really priced based on the industrial demand.
Now put 2 stacks for median income now and then
And?
1. this is not inflation
2. it’s barely an ok return investment wise
3. I actually have no idea what this pic is trying to show
This is an example of someone who doesn’t understand much, but just enough to prove their ignorance.
A currency is supposed to be a median of exchange not a long term store of value.
There’s a lot more than $3xxx on the left cash pile
[deleted]
The U.S. is no longer on the Gold Standard. The value of the two don’t much together.
Supply and demand pushes the value of Gold. While GDP and Bond investments globally push the value of the dollar.
I’m more of a hands on guy, when it comes to learning. I think I may need to get my hands on this to truly grasp the concept…
This is a picture to show an example of currency inflation: a commodity’s change in value over time, as the currency loses purchasing power
This entire comment section: This is NOT inflation, and gold is a bad investment
It’s already at 3k???
I joined like 3 years ago the silver and gold community and gold was at 1.5k
Now do it for computers!
A dummy would use a single commodity, gold in this case, as the comparison point.
That stack on the left looks like it is only $1,800.
Can we include what the additional income was by using the central banking system? I would assume we have a big bonus there to be able to operate in a deficit.
The same principle can be applied to BITCOIN! 👍
1oz gold =
4.3% of 2025 median income
5.5% of 1933 median income
Measured as a fraction of personal income, gold has devalued 22% in 92 years.
That’s only accurate if you equate the amount of dollars produced and that are in circulation, the state of the economy and the growing populous from then to now
That’s pennies. Do this with Bitcoin.
It should be self evident that you can’t have an increase in the Standard of Living without inflation.
$20 Gold coin invested in the stock market in 1933 sp500 would be impossible to fit in the picture, at ~$180,000
Using gold distorts the inflation picture a bit, since it is only, in the end, a commodity with its own valuation factors. (Plenty more has been mined since 1933.)
Actual inflation is worse – $1 in 1933 is $250 in today’s dollars. (so $20 -> $5000)
Gold and silver are real money , the dollar is a paper IOU . All fiat is paper , if it’s not backed with something. Basell 3 is coming , there have been two tier one assets since around ww2 , US treasury bonds and US dollars, in 2019 they added gold. This is why gold prices have been going up in the last 5 years and will continue to do so. Countries and banking institutions are buying it at high levels.
Bo[https://metalsedge.com/golds-rebirth-the-basel-iii-bank-accords/](https://metalsedge.com/golds-rebirth-the-basel-iii-bank-accords/)
Well there is also this: Executive Order 6102 signed on April 5, 1933, by US President Franklin D. Roosevelt “forbidding the hoarding of gold coin, gold bullion, and gold certificates within the continental United States.”
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