Gold: The Price of Gold Explained. Dont value it in Dollars!

Gold: The Price of Gold Explained. Dont value it in Dollars!


Arduinotronic Music its gold… yep this picture is painted on 22
carrat gold leaf. I’m going to talk about gold price so what is it about the gold price people find
it very difficult to understand and really the only way to understand
gold pricing is to look at history and the value various goods historically and how it
compares to the price of gold today and the
reason for this is that gold price is priced in many different currencies the standard one is the dollar now this can be misleading because it kind
of makes it look that if the price of the dollar goes down the price of gold goes up … well it may do in the dollar but not necessarily in
other countries and the other way around so really you need a mechanism a way of decoupling the price of gold from
currency and the only thing to do with that is to look at what gold would have bought you and there’s a lot of people who
do that They might produce various table like what the price of bread in gold may be over the years and the price of other commodities So let’s have a look at
maybe some averages and we’ll see what it will look like yes we are going back to 1965 Well why 1965 well it has nothing to do with the massive blackout that crippled New York
which is what this newscast is about the reason I am on going back to 1965 is its fifty years now industrial techniques
haven’t really change that much when it comes to food production over those 50 years and so you things like the amount of labour in
a product hasn’t changed terrifically in the sort of products we are looking at
and so that sort of thing will be taken out of
the equation whereas if I had gone back much earlier then there would
be large differences in the labour content so that’s why I’m lookin at 1965 … 50 is just
seems like a round number yes I was a complete Thunderbirds nut
and so were my friends in fact you wouldn’t have seen any
of us anywhere except in front of the TV when it was actually on enough of all this nostalgia lets go and have a look at some numbers
so let’s see what conclusion we can draw from pricing various things between 1965 and 2015 I’m not gonna show you it all at once hence the
two pictures what I am gonna do is I am gonna reveal things so let’s have a look median house price well average gas price 1965 was 13,600 dollars this according to government household
income time souls six thousand four hundred
fifty dollars large load what right 21 cents whole
chicken 2910 aches dozen long 55 cents and the most
important thing a six pack beer cost you I mean aunty
nonsense now in the same period of time goal her
aunt’s was 34 dollars now I have to say something a
mass is that the process goal strictly regulated it was regulation
both fear it was pegged to the dollar so the
dollar went up and down against other currencies with gold on is stopped in 1972 when the US come off
the gold standard and silver was also regulated and the reason why the Fed was worried
about so was because you had so dollars in
circulation and they feared if the price went much
up one dollar twenty-eight around although those huge pressure from
industry more so learn the process really should
have gone up then people would have found it
worthwhile to take silver dollars and recycle them it will cost the roundabout 29 or 30
cents to recycle an ounce so say using say bows prices metal prices at the time wreckage
however and firm RealtyTrac from what happened between them and now solace movies 1965 people out the Y a bit we say what’s happened Wow this big increases their and some things
be increased more than others its government I’m house prices has is gonna 1,470 point for on percent pencil household income has gone up by eight hundred and ten percent thats not quite so much for its gonna I’ve been fastened sent surging sea in the housing and on mice to the food area really the American public has in fact 190 because I 110 percent question 431 432
768 with the exception perhaps a right on so the American public is still a little
bit better off in terms of these things far perhaps spend a lot more of their
income enhancing and their income who owns has a sure up much old Tom man he s interesting thing miss McNicol when we went to the
average which is 860 1.71 percent series of gonna on average which go done who 3,000 414 point to known cent like gold as outperformed inflation pretty massively like by two to one really like gold would have been fantastic investment if
you and stakeholders some at 34 dollars an
ounce in nineteen sixty super Tom well it’s not done nearly as well this goal so you can see from this what the value colby’s value gold is it will preserve the you well
now it’s a mistake to think by low so horny because they were tones here
where you definitely and losing wickets if you
too boo goal pupil cold for example when it was about six hundred dollars an
ounce from the group 400 you would have lost a lot of money
if you sold it the peak at holman it’s now worth 3,404
train point in own percent afford it would
have been in 1965 and is now worth around about 1200 does and Mike money but this is normal life think back all too I think back gold is
that gold is not an investment she’s actually shield against losing all few cash because even US dollar goes
belly-up gold still has value in other currencies Neya you could Michael lose value is to
have worldwide gold standard I’m take everything two-goal and pick gold for very much artificially low figure as it used to be be picked 30 of dollars and that’s not gonna work anymore and
the reason is not going to work is just simply too much industrial come
on now gold is also too much industrial on 2mon so on so bashful to solution by the World Bank or with us this is a non-starter so the
value gold quite simply is world preservation well you found this little insight
useful if you do the islamic we share the subscribe please pfeiffer please do what we can to please much how because I
think I deserve it thanks very much by by

4 Comments

  1. thanks for the video! I'd love to see how other years it's changed, like from 1972 and then a couple dates of years after the unpegging of gold to the dollar….

  2. a relation to how much papermoney there has been printed in major currencies must be taken in to action now also.

    a total reset will then hurt gold bigtime

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