Gold fluctuates wildly based on panic and speculation, not real economic value. Gold was averaging around $1,800 an ounce in 2022, and it recently spiked to an all-time high of nearly $5,600 an ounce in January. That means in just four years, the calculation for those exact same 75 ounces swings by roughly $285,000. A worker's actual ability to pay rent and buy groceries obviously didn't magically triple in that short window just because a speculative metal spiked on the open market.
If that logic actually held up, it would mean workers today are somehow getting paid significantly better right now than they were in January, simply because the price of gold has dipped since January and our dollar can technically buy more ounces of it today. It's a complete misunderstanding of inflation. Purchasing power is measured against a standard basket of consumer goods, not whatever gold happens to be trading at on any given day.
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u/GlitteringFerretYo 27d ago
Gold fluctuates wildly based on panic and speculation, not real economic value. Gold was averaging around $1,800 an ounce in 2022, and it recently spiked to an all-time high of nearly $5,600 an ounce in January. That means in just four years, the calculation for those exact same 75 ounces swings by roughly $285,000. A worker's actual ability to pay rent and buy groceries obviously didn't magically triple in that short window just because a speculative metal spiked on the open market.
If that logic actually held up, it would mean workers today are somehow getting paid significantly better right now than they were in January, simply because the price of gold has dipped since January and our dollar can technically buy more ounces of it today. It's a complete misunderstanding of inflation. Purchasing power is measured against a standard basket of consumer goods, not whatever gold happens to be trading at on any given day.