Gold is widely considered a good investment to protect against inflation. But has gold really kept up with inflation, in terms of purchasing power? In 1932, 1 ounce of gold was worth about $20. At the time of writing in 2014, 1 ounce of gold is worth approximately $1,260. How does that translate into goods and services?
Paul Albarian & Associates, LLC specializes in buying and selling rare coins, precious metals, and jewelry. We are conveniently located in Burbank, CA and serve clients in neighboring cities. Call us today at (818) 827-7152 to set up an appointment and get a free verbal appraisal.
In the 1930’s, you could buy the best quality men’s suit for $20 – about 1 ounce of gold. Today, you can buy a high-quality suit for about $1,000 – still about 1 ounce of gold.
In the 1960’s, the average rent in Burbank, California for a single person was about $60-$75 per month. Today, the average rent in Burbank, California is about $1,600 per month – about 3 ounces of gold then, and 1.5 ounces of gold now. Gold still keeps up with inflation.
Today, 3 ounces of gold will buy you a “fully-loaded” Macbook Pro. Unfortunately, you couldn’t buy a Macbook Pro in the 1930’s. However, you could buy a Remington Portable Typewriter for $60 dollars – or about 3 ounces of gold.