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Gasoline Priced in Gold

In July of 2002 it cost the equivalent of 1.3 grams of gold to fill up your gas tank (15 gal) or about $20 when priced in dollars.*

In July of 2008 it still cost only 1.3 grams of gold but $61 when priced in dollars** – (305% more)!

If you priced other necessities in gold such as food, utilities, health care, etc, you would get similar results. Its because of “Inflation” (rising prices due to increase in money supply) and with the way the Fed is printing up hundreds of billions in new money to bail out Fannie Mae, Freddie Mac, AIG and all the big banks that caused the current mess (with the automakers next in line for a hand out), you needn’t be a genius to see that inflation will continue to increase in the future.

Truth is the Fed is depreciating the value of your money with these insane inflationary policies. But you can protect yourself from the consequences of any future inflation by converting some of your dollars (unbacked, counterfeit paper money that is shrinking in value) into gold bullion coins (real money) that are increasing in value. If you’re a little short on savings you could substitute cheaper silver bullion coins for gold. Percentage wise they pretty much rise and fall in tandem.

*In July 2002 gas was $1.33/gal (nat’l avg), gold was $315/oz
**In July 2008 gas was $4.05/gal and gold was $938/oz
1 troy ounce = 31.1 grams

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By | 2017-03-23T14:06:37+00:00 November 9th, 2008|Gold & Silver Commentary|

About the Author:

Jason Hamlin is the founder of Gold Stock Bull and has been investing in precious metals for over 20 years. Jason spent nearly a decade in analytics for the world’s largest market research firm, before finding success investing full time. He launched Gold Stock Bull in 2005 and turned his focus from helping fortune 500 companies to helping individual investors. Jason is a student of Austrian economics and a proponent of cryptocurrencies such as bitcoin and ethereum.