While gold is not commonly considered as a medium of exchange like paper currency, it still acts as an excellent store of value. On August 15, 1971 the so-called "gold window" was closed. Previously, the US dollar was redeemable by non-Americans at a rate of US$35 per troy ounce. Shortly after this event, General Motors came out with a new version of the Cadillac Eldorado - the longest running American personal luxury car.

In September 1971 the 1972 fifth generation model arrived in showrooms with a sticker price of US$7,546. For that month, the average price for gold was US$42.02. Thus, a shiny brand new Eldorado would have cost just under 180 ounces.

Today, the price of the same amount of gold is US$197,820. Those 180 ounces of gold can now nearly buy TWO 2009 XLR-V Cadillac Convertibles.

Hmmm...

By Mike Hewitt
http://www.dollardaze.org

Mike Hewitt is the editor of www.DollarDaze.org , a website pertaining to commentary on the instability of the global fiat monetary system and investment strategies on mining companies.

Disclaimer: The opinions expressed above are not intended to be taken as investment advice. It is to be taken as opinion only and I encourage you to complete your own due diligence when making an investment decision.

Mike Hewitt Archive

Only logged in users are allowed to post comments. Register/ Log in

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.