Called Motel 6 cause when started they wanted to charge 6 bucks a night
Correct.
Motel 6 started in 1962. I chose it for this example because I was born in 1962 and (as you point out) the actual name of the hotel was their price for a room. A hotel also makes for a good way to look at what something costs as a lot of different types of costs go into providing a hotel room (advertising, the building, the water to wash the laundry, maid services, etc). Let’s look at it some more:
In 1962 a night at Motel 6 costed $6. An ounce of gold costed $35.35. That means that with an ounce of gold, you could buy almost 6 nights at Motel 6. ($35.35 / $6 = 5.89 nights).
Now, if gold is really a store of purchasing power, then 56 years later (God, am I that old… LOL), an ounce of gold should still buy me 6 nights at Motel 6. If it only buys me 5 nights or 4 nights, gold has not maintained its purchasing power. So let’s find out if gold has maintained its purchasing power to buy hotel nights at Motel 6 since the day I was born…
I just checked and Motel 6 in my area is charging $60 per night. Now are the rooms at Motel 6 ten times larger than they were in 1962? Nope. So why do they cost 10 times more? The reason is that the dollar’s purchasing power is only worth 10% of what it was in 1962. It lost 90% of its purchasing power! That’s no good. So how did gold do? Did it lose purchasing power so that an ounce of gold can only buy 5 nights or 4 nights or 3 nights or less, today? Let’s do some math:
Gold is $1,297.40 today. Motel 6 charges $60 a night. That means an ounce of gold will buy me more than 21 nights at Motel 6! ($1,297.40 / $60 = 21.62 nights).
While the dollar lost most of its purchasing power in just my lifetime, gold hasn’t lost any. It’s a true store of wealth and purchasing power over time.
Good grief Nick.
That was before we went off the gold standard.
Try again.
Maybe you want to claim it now costs $1280 for a motel 6 stay.
I’ll put you up for half that.
That’s my point. You can’t value something in dollars that are being debased, so I didn’t. I priced gold in Motel 6 nights for you to show you its strength in maintaining purchasing power.
We are not on the gold standard.
Now about your claim of no inflation in the last 9 years…
Try to stay consistent.
Hey Nick let’s do a trade.
I’ll send you in $$ what a motel 6 1 night stay costs today.
You send me an ounce of gold.
Deal?
But my math showed that an ounce of gold today buys more than 21 nights at Motel 6. That’s 3.5 times the number of nights an ounce of gold purchased in 1962.
Get it?
Michael, you’re a reader of scripture. The Old Testament (Daniel 2) states that in 600 BC, during the rein of King Nebuchadnezzar’s, that an ounce of gold bought you 350 loafs of bread.
Let’s see if gold lost any purchasing power in 2,600 years. Attached is an image of a loaf of bread for $3.69. Also attached is a chart showing gold at $1,294.00 an ounce.
Now if gold has maintained its purchasing power for 2,600 years, the price of an ounce of gold divided by the price of a loaf of bread should be around 350, just like it was back in 600 BC. Let’s do the math!
Hold on while I look for my calculator.
OK. I found it.
$1,294.00 / $3.69 = 350.67.
And there you have it. An ounce of gold bought 350 loafs of bread in 600 BC… and still today an ounce of gold buys 350 loafs of bread.
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Yes I get it.
Gold is extremely overvalued.
Bam.
Better sell before it dives.
Sell? As in trade gold for dollars? Dollars are already falling and have been: Wealth Storage for Home Inspectors - InterNACHI
Sell? As in trade gold for dollars? Dollars are already falling and have been: Wealth Storage for Home Inspectors - InterNACHI
Gold is up 1.36% YTD and 1.5% over the past month.
My investments are up 15.51% YTD and 17.92% for 1 month.
Gold is always a laggard and has no intrinsic value. It is a rock. Period.
You should start a hedge fund. That’s better than any asset manager on earth is doing.
GLD YTD change: +4.82%
S&P 500 YTD change: +11.08%
NASDAQ YTD change: +13.17%
Dow Jones YTD change: +11.13%
Put another way, investing in yellow rocks is not smart!
As of 2/15/19 one of my retirement accounts was up 38.17% since 1/1/19. When you take out holidays and weekends, that’s about $100,000 in 30 days. 
BAM!
LOLOL
OOPs
How low will it go?
$1,500.00.
When?
Predictions without a time frame are worth less.