The Pace of Inflation

Again, saw this floating around the internets and thought it was worthy of sharing:

On August 15, 1971, the USA abandoned the gold standard, and gold was at $35/oz. Forty years later to the day, gold is $1750/oz. Gold holds its value through time, meaning that the dollar is 50 times less valuable now than in 1971. At this clip, by 2051 gold will be at $87,500/oz. But of course, we’re printing much more money now than in the past, so if the trajectory doesn’t change, it will be much higher.

Remember, inflation is damaging to an economy. It eats away at the value of savings, and it causes us to spend today rather than save for tomorrow–a recipe for low long-term growth… also known as the 1970’s slump.

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