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From: rdz@ccice5.UUCP (Robert D. Zarcone)
Newsgroups: net.politics.theory
Subject: Re: The gold standard.
Message-ID: <686@ccice5.UUCP>
Date: Tue, 19-Feb-85 12:42:59 EST
Article-I.D.: ccice5.686
Posted: Tue Feb 19 12:42:59 1985
Date-Received: Thu, 21-Feb-85 05:30:56 EST
References: <613@ukma.UUCP> <94@ucbcad.UUCP> <420@ssc-vax.UUCP>
Organization: CCI Central Engineering, Rochester, NY
Lines: 14

> by swings in the economy.  Over the long run the value of gold has
> remained remarkably stable.  If you take 1940 as a base year, and $35
> per ounce as a base price, inflation since then leads to a current
> price of $264 per ounce for gold, which is not very different from
> the 300-310/oz prices today.
> 
> Dani Eder / ssc-vax!eder / Boeing

This is true.  My question however, (and it is an honest one) is how
would you compensate for those periods, such as the late 70's, when
gold lost all rational contact with inflation rates?  If I remeber
correctly, gold was selling for over $800 an ounce during this period.

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