How Much Beer Can You Buy For 1 Ounce of Gold? Oktoberfest Special

by birtanpublished on October 31, 2020

Have you ever thought of the true value of gold I mean really the value of something isn't its price it's what you can buy with it that is the true value and I've got Ronnie Stovall a from the in gold we trust report of incremental AG with me on the phone and you've got this fantastic chart here that shows how gold maintains its purchasing power throughout the decades and this chart shows you how many liters of beer one ounce of gold buys Ronnie how are you doing very well Mike how're you good so this chart is the final chart in your chart book from the in gold we trust report and I found it to both

Entertaining and you know it's this this is close to my heart I think it was back it was back in the early 80s it was like 81 or 82 that I attended Oktoberfest I drank quite a few of those liters of beer so it's that's when an ounce of gold would buy more than a couple hundred I didn't drink a couple hundred liters of beer but so tell us a little bit about this chart how you compile the data and what it means to you well actually it's it's one of our most famous charts and people love it because you know it shows you how gold over the very long term really protects you

Against paper money's ongoing loss of purchasing power so actually the the average inflation at the Munich Oktoberfest is roughly four percent every year so this Oktoberfest mass which is one a 1 litre mark gets more expensive by 4% every year now measured in gold terms it tells you that your purchasing power is actually it's not 100% stable but it is much more stable than compared to fiat money and at the moment with one ounce of gold you can buy a hundred and fifty liters of beer at Oktoberfest which is slight

The above average so it's not extremely expensive but it seems to be a good deal and I think that the power of this ratio of this chart is just to show you gold protects against paper money's ongoing loss of purchasing power that's really the the important message of this chart you know there's something else that I just noticed in this chart is you can see Gold's previous bull market in here very very clearly it starts you know after 1970 this there's a trough at the bottom in this chart in 1970 and then it starts to rise and by 73 74 it Peaks and then there's a mid cycle correction and

Gold peaked on the last day of 74 and then it became legal for Americans to own it again first day of 1975 and coincidentally gold started falling so it went from where this chart has its little minimum and you could only buy 48 liters of beer with one ounce in 1971 this chart goes up and gold was 35 bucks an ounce back then and it rose to just a breath away from 200 announced at the end of 74 and then it did a mid cycle correction and gold fell almost 50% it fell from just a breath away from $200 all the way down to 103 by I believe it was September of 1976 it was 20 months

That it took to hit bottom and then it started rising again and you can see that in its value against beer weights you can see that the price of gold measured in it's priced in beer here and it went up to 227 beers Frank probably around 80 beers around 1976 it exploded up to 227 beers and this is annual data that you've got here so I think the average annual gold price in 1980 was somewhere between four and six hundred dollars I can't remember but the the peak in Jani 1980 was 850 dollars yes so it was probably buying you 500 litres of beer

If you measured it at that peak but then you can see the long bear market in gold and bottoming into the year 2000 and then the bull market again starts and it's that starts purchasing more and more beer and it Peaks in 2012 here at a hundred and thirty-seven litres of beer and then again just like the bull market in the 70s we have a mid cycle correction and it's now coming off of the bottom of that mid cycle correction but it has yet to exceed its previous high it has yet to make the explosion so it's it this again shows the echo of the bull market of the seventies you can see

That this bull market is stretched out longer in time but it's much greater in magnitude if you look at the first wave it looks like gold purchased about a hundred and twenty liters of beer in 1974 or 73 that was the first time it broke through the first wave up in the bull market and this bull market the peak was in 2000 that of the peak of the first wave was in 2012 at a hundred and thirty seven litres of beer so this is a much more powerful bull market and gold but a lot more beer at the end of its first wave up and now we've been through the mid cycle correction it didn't go

Quite as low as it did in 1976 we haven't even surpassed the 1974 peak of that first wave up in the first bull market so when it surpasses that this is going to explode I think you're going to see a day come where an ounce of gold buys 500 liters of beer or more what do you think Ronnie and then we should meet up in Munich Mike you're gone and with that I think we should wrap up this very very special section of your in gold we trust report on the value of gold measured in beer so thank you very much please take a look at the links in the video description below and

Follow those links to any special reports that we've got visit Ronnie's website please give our videos a thumbs up share them and subscribe to our channel click that notification bell it really helps our youtube search results and our rankings and so it helps this channel so if you're getting anything from all of this stuff please help us spread the word thanks again for listening Thank You Ronnie for being here thank you very much like I really really enjoy that thank you we'll see you all next time thanks a lot goldsilver.com

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