While gold is not commonly considered as a medium of exchange like paper
currency, it still acts as an excellent store of value. On
August 15, 1971 the so-called "gold window" was closed. Previously,
the US dollar was redeemable by non-Americans at a rate of US$35 per troy
ounce. Shortly after this event, General Motors came out with a new version
of the Cadillac Eldorado - the longest running American personal luxury car.
In September 1971 the 1972 fifth generation model arrived in showrooms
with a sticker price of US$7,546. For that month, the average price for gold
was US$42.02. Thus, a shiny brand new Eldorado would have cost just under 180
ounces.
Today, the price of the same amount of gold is US$197,820. Those 180
ounces of gold can now nearly buy TWO 2009 XLR-V Cadillac Convertibles.
Hmmm...
