inflation

Keeping up with the Joneses (Cramplers)

In 1967, one could buy a helluva lot of things with $3,000. To buy the same merchandise today would cost around $90,000. Things haven’t gotten more expensive; our fiat currency, the dollar, has become less valuable due to inflationary pressures that are inherently tied to a currency system not backed by tangible assets, such as precious metals.

Today, it costs over $4,000 to buy 1 ounce of gold, whereas in 1967, it cost only $35 to buy the same amount.

Gold hasn’t become more expensive; the US dollar has become less valuable because it is being printed in greater quantities without being backed by tangible assets.

The Cost of Gold per Ounce Today Versus 1967

At one time, our US currency was as good as gold. Today, it’s barely worth the paper it’s printed on, and not for much longer as we approach a digital currency system in the coming years that will render physical cash obsolete.