Loading ...On January 1, 1975 American citizens are allowed to own gold again. Gold is $194 an ounce, silver $4.44.
Pretty much the cost of most basic things in life from the mid 1970s are higher by a factor of 10 to 20 times more than that era. (15-20 times more likely ball park) Think about it. Your house, property taxes, new cars, cup of coffee etc.
Some things like a newspaper that was .05 cents is today $2. That’s a factor of 40 nickels. Cigarettes’ were .25 cents, today $10, that’s 40 quarters or 40 times more.
Gold today at $1152 (harder than ever to find) from $194 in 1975, is not even 6 times more. $194 times a factor of 15, means the “natural” gold price should be $2910/oz. On the low side $1940, high side $3880/oz.
Now that its obvious to see all things are going in reverse, perhaps Gold will be allowed to be valued naturally.
http://www.maguireref.com/wp-content/uploads/2012/03/GoldPricesChart.pdf