Gold for House?
Gold for House?
It's all about the money supply. The devalued our money so workers think they were making more to avoid a communist revolution.
For anyone wondering, the current gold price is:
59.790,42 EUR/kg or 64.898,53 USD/kg
So this post is fact checked. You can buy a good house for 648.985,30 USD.
How much was it worth in 1920? I'm struggling to find that info online...
https://nma.org/wp-content/uploads/2016/09/historic_gold_prices_1833_pres.pdf
1kg = 32.1507 troy ounces
So ten kilo of gold in 1920 would be worth $6648.76 with the average home being around $6300
Of note and why the above comparison is meaningless
A two-tiered pricing system was created in 1968, and the market price for gold has been free to fluctuate
For most of history prior to the 20th century, 10kg of gold would have bought you quite a fancy house. It would be about 140,000 roman Denarii, or roughly 120x the wage of a legionary.
I mean, this is like saying "$10,000,000 would buy you a house in 1910, and $10,000,000 would buy you a house in 2023"
It would take a lot more gold to buy you a house in 2023 than it would have in 1923
The price of gold has kept up with inflation. Same amount of gold required in both periods.
Yet house prices have not. The price of housing, let alone homes, has outpaced inflation and wages not too gradually for half a century now.
If you look below, the comments did the math; Same amount of gold.
The main issue is that gold isn't directly used as currency, so this post is really saying "if you bought something worth a house, it is worth a house. Isn't that weird?"
Gold used to be directly tied to our currency, but you can't just print more money when it's based off a gold standard, and the government didn't like that, so they changed the standard.
I'll stick with Bitcoin