I get it that gold is insurance against inflation. And, it's real money in an economic catastrophe.
My question is on behalf of the Anons who may have purchased some gold coins (but lost them in the lake). If we paid $1000 for one 1oz coin, and the US goes back to a gold-backed standard and values gold at $35/oz., that is quite a loss! I am not that is what will happen, but I present that scenario as part of the broader question: What would gold need to be valued at in our fiat US$ currency in order to be the backing?
Any Anons have a sense for the future value of a gold coin in the gold-backed dollar scenario? A lot of people have purchased gold coins hoping that they will revalue north of $20K or $50K to accommodate all of the fiat floating around. But I just can't see the elites letting people get "rich" so easily.
If gold is set at $35/oz, the important question will be how much that one ounce will buy after the revaluation (i.e. does a cup of coffee now cost 5 cents?). I'm more concerned about how many ounces I have versus what it's worth in fiat currency. We'll have to wait to find out 1) if it happens and 2) what the revaluation looks like. The latest estimates I hear floating around say gold would need to be revalued at $100K, give or take.
This. The high cost of current goods is largely because the dollar has lost over 90% of it's buying power. So imagine if gold was $35/oz again but your house was also suddenly $7000.
If gold was $35/oz in the US - all the financial markets from all of the world would buy it for cheap and … there would be no more gold in the US, just after couple of days.
If the gold-backed currency is ever implemented - it will most likely be the current (market) gold price, unless the denomination happens at the same time (meaning: cutting zeros on all prices, including salaries), but this is not necessary as the bread doesn’t cost $100,000 yet.
There is a MAJOR flaw in your logic here. What would they be buying our gold with? Think about that.
You don't sell your gold for the exact thing you are trying to get away from (federal reserve note), that is idiocy.
Which also means a 35$ price in the new currency means the price for everything in this country drops like a rock to adjust. For example, that $1 menu you eat from suddenly becomes the $0.05 cent menu. The $4/gallon gas you pay for is now $0.20/gallon. Etc.
That $100,000 price for a loaf of bread would be in federal reserve notes, which no one will want.
For the OP, the answer to your question is very simple. Simply google "price of X in (any year during the gold standard)". That's the easiest way to wrap your head around it to get ballpark figures.
If the value of your house suddenly dropped to less than 10,000 when you still owe $100,000s people would be screwed
Yes. My granddad used to buy trucks new off the showroom floor for less than a grand fiat.
Yeah now they are like 80k
Only because people continue to take loans and pay it. My philosophy is to know how to fix a car, buy and older one (2005 or earlier to avoid tracking capabilities ((maybe newer dunnol)) and drive it forever. Cars are simple, albeit uncomfortable, to work on.
we'd be back in the days of a nickel for a gallon of milk
That sounds like a forty to fifty years ago price. My uncle told me that he swore to anyone that would listen that gas would never exceed $0.75/gal. He said he was proved wrong within two years. That was the early seventies in Chicago.
I started driving in ‘72, gas in Canada was 0.39/gal and Michigan was 0.19/gal
They use to have gas wars in Houston in the late 50's and gas would get down to less than 20 cents a gallon. You could get bread 5 loaves for a dollar and day old bread at loaves for a buck.
From what I recall, where I live, prices have risen by 4x-8x in around 30 years.
I've always seen this for all investments that have been made, GME, crypto, etc. Once the value of the dollar recedes back and the price of things recede back, the price of all investments will increase due to the amount of products being able to be purchased.