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.
© 2009 DollarDaze
Mike Hewitt is the editor of DollarDaze.org, a website pertaining to commentary on the instability of the global fiat monetary system and investment strategies on mining companies. His website also provides a no-cost market data feed service with up-to-date quotes on currency exchange rates, commodity prices and major indices. Mike can be emailed at firstname.lastname@example.org.
Disclaimer: The opinions expressed above are not intended to be taken as investment advice. It is to be taken as opinion only and I encourage you to complete your own due diligence when making an investment decision.