Using Wyplosz’s 25-year time frame, consider that on September 8th, 1987, the London fix was $456.95. Today the dollar is worth about 50% less, meaning that gold in 1987 prices would cost around $921ozt today.
Another way to look at it is that you had two choices in 1987. You could either put $457 or buy an ounce of gold and put it under your mattress. If you’d opted to put the empty promises of the U.S. Treasury under your mattress, your buying power would be the equivalent of $227 in 1987 dollars; not a very good return. However, your gold would now be worth $843 in 1987 dollars (based on $1,700 gold).
Just like the emperor, the trappings of the anti-gold standard crowd are empty and transparent. Fifty percent confiscation through inflation is considered insignificant to these modern-day experts? Perhaps the 90% gain in value those who held gold enjoyed is insignificant as well.
J. Keith Johnson’s Austrian and libertarian perspectives on current socioeconomic and geopolitical affairs are fueled by his insatiable desire to both discover and share the truth. A Goldco Direct affiliate, you’ll find his commentary on The Gold Informant website, as well as various Internet financial and news sites.
