Today, a new Buick will set you back about $26,000. Divide by $1,550. What do you get? About 16. This tells us that an ounce of gold is worth more today than it was then.
How about oil? In 1940 you could get a gallon of gasoline for about 10 cents. Last week, it was $3.50 cents. An ounce of gold would have bought you 350 gallons in 1940 and 414 gallons today.
Conclusion: gold is not too cheap at $1,500. At $1,900 it was too expensive.
Read more: Is Gold Washed Up? http://dailyreckoning.com/is-gold-washed-up/#ixzz1ivAFsYqK
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