Gold vs Dollar
GOLD INVERTED RELATIONSHIP WITH THE U.S DOLLAR.
This highlights how gold has historically moved inversely to the U.S. dollar. Fiat currencies tend to experience devaluation over time due to inflation, while physical assets like gold have historically been viewed by some as a way to preserve purchasing power.
According to historical pricing data, the value of gold has appreciated significantly since 1913, when the Federal Reserve was created. In contrast, the purchasing power of the U.S. dollar has declined over that same period, largely due to inflation. Some analysts point to a long-term decline in the dollar’s purchasing power since 1913, with global monetary shifts prompting interest in asset diversification among certain central banks. 1
Since the Federal Reserve started printing the U.S. dollar, inflation has contributed to a reduction in the dollar’s purchasing power over time. A sum of $100,000 saved in 1913 would have significantly reduced purchasing power today due to inflation over more than a century.
1. https://medium.com/swlh/how-much-does-your-cash-cost-1110a7437abb
How Much Things Cost in 1913
Average cost of a new house: $6,500.00
Average wages per year: $1,600.00
A gallon of gas: 10 cents
Average cost for house rent: $17.00/mo.
A loaf of bread: 6 cents
Average Price of new car: $600.00
Nicely tailored suit $25.00
How Much Things Cost in 2013
Average cost of new house: $250,000.00
Average wages per year: $39,000.00
A gallon of gas: $3.70-$4.30
Average cost for house rent: $800.00/mo.
A loaf of bread: $2.50.
Average price of a new car: $28,400.
Nicely tailored suit: $1000-$2000
Rising costs in areas such as healthcare, education, and energy have reduced the purchasing power of the U.S. dollar over time. Historical comparisons suggest that the same amount of money would have had significantly more buying power in 1913 than today. In 1913, the median home price was substantially lower than today. With inflation and housing market changes, the cost of a single home has increased considerably. Over the past decade, the purchasing power of the U.S. dollar has gradually declined due to inflationary pressures. Let’s say you deposited or put away $100,000 in 2000. Today it is only worth about $74,000.
If you purchased $100,000 of gold in 2000, today it is worth over $530,000. Since 2000, the dollar has lost over 27% of its purchasing power, while gold increased 530%.
The following link below will direct you to real inflation stats by dates.
