Gold and Cadillacs
Commodities / Gold & Silver 2009 Nov 09, 2009 - 07:16 PM GMTBy: Mike_Hewitt
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.
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