222 Years Of Gold, Wars, Inflation, Economies, And Presidents

Tyler Durden's picture

Whether as the basis for the monetary unit of a country, or in its role in comparison to the currency of other assets, the price of gold has long been a subject of great interest to both the scholar and the general public. MeasuringWorth has created a multi-century time series of the barbarous relic's USD price. From the penny, the crown, the rose ryal, the guinea and the sovereign coin, the question of "what was the price then" is answered combining a number of sources and Visualizing Economics compares the 'real' price of gold since 1791 to GDP, wars, US presidents, and inflation...


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LetThemEatRand's picture

I'll take real money for $1400 Alex.

SRSrocco's picture

There seems to be more proof that Russia is buying more of its own domestic gold production.  Furthermore, the United States is actually sending more of its domestic gold production abroad... seems Bass-award:

Russia Purchased the Majority of Gold Miner’s Production



LetThemEatRand's picture

Seems as if the barbarians are at the Gates.

Spanky's picture

But whom are the barbarians? The ones outside, or those inside the Gates?

LetThemEatRand's picture

The guys behind the gates would not bother stacking if the guys outside the gates didn't figure it out.

GetZeeGold's picture



Gold was around 5778 years before the rest of that stuff. It's the ultimate time tested hedge fund.


Cap Matifou's picture

You forgot 6 zeros from the end of that number.

AlaricBalth's picture

Anyone else notice that from 1774 to about 1950 deflation occurred approximately 35% of the time (62 out of 176 years). Then around 1950 until today deflation virtually disappeared from the official CPI.

Thomas's picture

The inflation adjustment on that plot is a total load of crap: 2x price gain since 1981. How many moons orbit that planet?

robobbob's picture


gasoline: 0.90/gal vs $3.60

moderate range car $8,000 vs $25,000

house $80,000 vs $180,000

gold looks lagging. maybe I shoulda stockpiled a fleet of circ '78 Lincoln Continentals

buyingsterling's picture

My wife was born in LA to two Russian parents, and speaks fluent Russian. We've actually discussed moving to Russia. Ten years ago if someone suggested that, I'd have thought they were crazy. No longer.

Winston Churchill's picture

I employ a middle aged Russian.

She is contemplating returning to Russia for the freedoms she thought

she came to the US for.

Talk about irony.

RaceToTheBottom's picture

Dual citizenship is now an empowering option.  I would not have contemplated it earlier, now I am doing it.

francis_the_wonder_hamster's picture

Sure, but that still doesn't get you away from the US tax code/collectors.

Al Gorerhythm's picture

I see that chart as "The Real Value of The Dollar". There is much to debate about that too, as the dollar is backed by nothing other than good faith and credit of government.

merizobeach's picture

"good faith and credit of government."

And partnership with the military industrial complex.  Don't forget that part.

GAAP is crap's picture

The dollar is backed neo-slavery/every US Citizen.  That's the way I see it.  Taxing labor = slavery = the implicit backing of the US deby as money dollar.  A citizen can't even leave the country and get out of it.  Slavery.  I don't believe it to be backed by nothing.

I know, the "jurisdiction" argument.  Judges and IRS agents with AR-15's make a good case otherwise.


JustObserving's picture

Is that real inflation or massaged numbers courtesy the US Bureau of Labor Statistics?  Real inflation has been at least 3% higher than the official numbers for the last decade at least. If you use the 1980 methodology for calculating inflation, real inflation has been 6% or 7% higher than the official inflation for the last decade.

If real inflation is used (say, 3% higher than official numbers) for the last decade, US GDP is 30% lower than the current number.  On July 1, US GDP rises by $500 billion bacause of the addition of intangibles to the GDP.  US economic statistics are all smoke and mirrors.



Harry Dong's picture

Yeah, something's really screwed up with this chart. If the mean and true price is just 600 then hallelujah. I'm borrowing $$$ to get some shiney stuff...kind of like what I did when it was just $250.


duo's picture

Just use M2 or M3.  All are 10-11x higher than in 1971, implying a 6%  CAGR in money supply since then.  Add in 3X inflation between 1913 and 1960, and maybe another doubling during the '60s, and you've got 35-40X inflation since 1900, or 2.5 cents back then buys what a dollar does today.  That works out to 3.7% inflation over 100 years.

Unsklled labor in 1900, about $400 a year.  Today, about $16000.  Looks about right to me.




pcrs's picture

A same price in 1980 and now, suggests prices have roughly doubled. That is more a factor of 4.

Missiondweller's picture

In this case "real" is not meant as an economic term to imply its inflation adjusted.


This graph is worthless.

noob's picture

barter on... bitchez
It takes two - Marvin Gaye & Kim Weston

alphamentalist's picture

notice how there was never been deflation since the keynsians took over? hmmm.... it is like we are storing it up. mean reversion is a bitch. 

Urban Redneck's picture

In that case, the hyperinflationist gold bugs should look at the prekeynesian price performance of gold in inflation vs deflation...  

merizobeach's picture

Gold wouldn't need to be so expensive if everything else also wasn't.  Relative purchasing power is a more relevant measure than fiat dollar price of rehypothecated claims.

world_debt_slave's picture

Here the history of empires, a timeline, we are a failure.

bunnyswanson's picture

Strange phenomena taking place around me.  House parties.  People are visiting each other.  Cars are overflowing parking spots and I can hear music, car doors.  New American flags bigger than ever are flying on poles attached to homes. 

Meet your neighbors.  They are ready to talk about this now.  Throw a dinner party, BBQ, play cards? bingo?  It's time to move in doors and talk.

There is something in the air tonight :)

http://www.youtube.com/watch?v=YkADj0TPrJA Phil Collins -

Don't give up until that fat lady sings at your funeral.

world_debt_slave's picture

The citizens and central planners become delusional towards the end, e.g. Germany in the 1920's, the fall of Roman Empire, Babylon, etc.

Seize Mars's picture

Don't forget. The plan here is to collapse the Soviets ("westernize" them) and then collapse America ("communize" us).

The plan is to bankrupt and ruin America. Get it straight. Of course they stole our fucking Ft Knox gold. Of course they are exporting America's fortune. They want us impoverished and powerless, ignorant and disarmed.

That's. The. Plan.

otto skorzeny's picture

and by "they" I assume we agree that it's a certain group that runs Wall Street and heads the Fed  but their name can't be mentioned here on ZH lest the pussy Swiss get their panties in a twist.

DaddyO's picture

The Druids, right?


Oldballplayer's picture

You have to watch out for those Druish Princesses.

Seize Mars's picture

Bullshit. I'm not into closet racism. If you are, I don't care. But don't put that on me.

By "they" I mean the stars of the "Creature from Jekyll Island." The usual bank / oil / whatever / scumbags.

otto skorzeny's picture

I'm not closet about it -I hate the motherfuckers. Check your history- the fucking Rothschilds ran that little shitshow on your little island and we know the tribe they're from. That was a little bedtime story for all the conspiracy kooks to cover for the big show going on leading up to it.

JOYFUL's picture

Before you claim some kind of moral high ground here... please lay out for us the exact nature of 'closet racism'... and as a further favor, include us in your reasoning as to where you discovered it in the comment you responded to

and by "they" I assume we agree that it's a certain group that runs Wall Street and heads the Fed  but their name can't be mentioned here on ZH lest the pussy Swiss get their panties in a twist. *

so that we can all be made aware of what 'closet racism' involves...

thanking you in advance...


*the comment in itself is a red herring... as was the putative "Swiss racism law" explanation for the fevered and frantic attempted putsch which took place here a few weeks back... wheels within wheels... lies within lies... there's still plenty of lines of enquiry to be teased out from the ball of bullshit which has been spun here in the hopes of freezing debate and manufacturing 'consent' to invisible limits.

Sean7k's picture

There was only one "star" of Jekyll Island: Bernard Baruch, a known operative of the Rothschilds and one of the most influencial advisors to presidents until FDR. Baruch was a zionist. This has nothing to do with rascism or anti-semitism ( a made up assignation). 

I have noticed, that since the new policy was adopted here, I have not had a single comment censored. I do keep my comments historically based and leave out any slurs. Further, it is not only the Swiss that have their panties in a knot. I recently ordered a copy of the Protocols of Zion from Amazon. Read the disclaimers, obviously required by the ADL, including their own.

Censoring free speech, as well as controlling the content in media is what the zionists do. It is not only banking control and government takeovers. I have never read a disclaimer on a book before and I buy hundreds of them. 

Using terms of inclusion to obscure the real players is a common propaganda tactic. Perhaps you are just naive, I certainly hope so. 

disabledvet's picture

You need to read up on this guy. http://en.wikipedia.org/wiki/Walter_Lippmann This is about "manufacturing consent" and the contradictory belief of both "having a democracy" and "running the country." it is a mistake to think "somewhere in the middle is a capitalist." the person in the middle is the MEDIA. Bernard Baruch was not a media person.

Sean7k's picture

I'm well aware of Walter Lippman, but would suggest better sources than wikipedia. There is not a conspiracy book wrtten that doesn't account his contributions to tyranny. However, Baruch wrote the FED reserve bill, he ran the War resource board and advised every president from Roosevelt to Hoover. 

The Zionists work on many levels.

Tinky's picture

Setting aside the accuracy (or lack thereof) of your charactization of Baruch, he did author my favorite investment quote ever. When asked by a financial journalist (writing for Forbes, perhaps, and I am paraphrasing) "To what do you owe your tremendous success investing in the stock market?", Baruch responded: "Selling too early."

Cabreado's picture

What is bankrupting and ruining America is not about gold; it never was and never will be.

While I've been in my share of boating accidents, I'm not sure if you realize that your version of "the plan" renders PM's useless?


merizobeach's picture

"That's. The. Plan."

Ok, well, then, what's next?  Because 'the plan', as you've outlined it, has been accomplished.  Yeah, some of you are still armed, but could enough of you ever be amassed so as to outgun Big Brother?  Don't get me wrong, I'd pay per view to see that.

economicmorphine's picture

Disagree. If a bunch of rag tag rebels in Afghanistan can keep Big Brother occupied for 12 long years, I can only imagine what 25,000,000 Texans will do when they've finally had enough, especially when native sons of the Lone Star Republic are forced to pick sides.  They will abandon Big Brother in droves and his military will be a shell.  Viva Libertad.  Viva Texas.

robobbob's picture

Nothing is accomplished. Only indvidual steps towards the goal. The Plan is to impoverish and decimate all effective opposition until nothing is left but ignorant serfs. Death of a thousand paper cuts and slow starvation into submission without a critical mass ever forming to rise up and accurately engage the true puppet masters.

First they will ridicule. Then they will infiltrate and co-opt. Then they will pre empt. Finally scapegoats will be offered. As if the guy running the deli, doing accounting,  or doing your proctology examine have absolutely anything whatsoever with the top mechanations. Should that fail, major war has always done the trick.

Heirarchy of disposability: Minorities-racial or political, Society at large, Shephardic before Ashkanaz, Ashkanaz before zionists, anyone or anything before the elite.

Know your enemy. Know their tricks. When they point their finger and offer up scapegoats, don't fall for it.

Sean7k's picture

The plan is to seize control of the world. Why would they ruin the most productive countries with the most wealth? They want to possess  and control the wealth and labor productivity. Why would they move mass amounts of wealth, when they don't need to?

People have often been impoverished, ignorant and disarmed. It is the leaders of a society that must be made powerless and disarmed. You never impoverish the leaders, they control the people. 

Gold/silver are meaningless in this equation. There is no way to establish a value for them, because they have passed from recognition as money. People actually think currency is money, rather than a money substitute. 

Gold and silver will only be useful if: one, black markets are established or two, it becomes the premier collateral instrument in a monetary reset. The concept of wealth protection ASSUMES our society will retain some measure of freedom. This is the first time in history that currency can be hyperinflated with minimal repercussions for its' value. Why? People have lost all knowledge of real value, private property and functioning markets.

It is all about managing perceptions of wealth and the standard of living. Most people are incapable of penetrating this matrix. Especially if they lack the historical wisdom that can come with age. If you can control the system outcomes for a timeframe that exceeds the lifetime of people, you can rewrite history, economics and politics. 

The Zionists started in the 1870's. They gained control in 1918. It is all managing perceptions now. 

economicmorphine's picture

Utter nonsense.  The plan is to eliminate between 5-6 billion of the 7 billion people on the planet.  What has happened up to this point is merely setting the table.  Everything the developed world has built has come out of the ground.  Oil, coal, metal, silicon, plastic, food, water you name it.  It is all from the earth.  The earth is too crowed and allocating what's left among 7 billion people isn't going to work, so 6 billion of us have to go.  That. Is. The. Plan.

Sean7k's picture

The black death was the last large scale population reduction. It brought forth the reformation, renaissance, artisan guilds and capitalism- resulting in the greatest expansion of freedom to date. Population reduction will be relative to excess labor. The key is excess.

Most everything in the developed world has come from added value (like plastic). Resources are only a part of the equation.

The plan is about control over all people.

economicmorphine's picture

Still learning how to use the computer.  Double post.