The expensive clothes store at the entrance to our office building is advertising “two hand-made suits for $1,500.” This tells that the price of gold will decrease a lot more. For historically the price of gold has been equal to the price of a suit for a well-dressed man. It cost an ounce of gold to buy a toga for a Roman senator; it cost ounce of gold to buy the outfit Lord Capulet wore at that fateful ball where Juliet met Romeo; it cost my father $35 for a good suit when he was a miner of gold at $35 an ounce. Why should I pay twice the price of an ounce of gold for a suit? (more…)
Posts Tagged ‘gold price’
In the mid-fifties, gold cost $35 an ounce. My father, a mine captain, earned a hundred and fifty pounds a month. I cannot be sure of the exchange rate. Vaguely I recall that a pound was about two dollars. So let us say he earned about ten ounces of gold a month or about one hundred ounces of gold a year.
With gold at about $1,700 an ounce these days, a hundred-ounce-a-year salary is about $170,000. How many miners these days earn that sum? Truth is not many from what I can see. You have to be pretty senior to earn that salary–but then my father was relatively senior.
These gold-price to salary comparisons are prompted by a fun article in Commodity HQ at this link. Surprising how little an ounce of gold buys these days. I know that I spend the equivalent of an ounce of gold each month on books, CDs, DVDs, and other indulgences, vices, and diversions. What gold-percent of your income goes on pure pleasure?
Which makes me wonder if mining salaries and the price of gold have advanced in lock-step with the price of gold — or have salaries fallen behind? Is there a correlation? I have done no research for this posting. I leave that to those with a greater eye for the detail of the price of gold. And I would appreciate your take on the correlation of the gold price and mining salaries.
The price of gold rises daily. Some news feeds have degenerated into infinite streams of platitudes about why the price of gold will climb every higher. Or burst as the next bubble to be charged to the taxpayer. Seems to me that while a few may benefit from the infinite rise in the price of gold, most will suffer mightily. From my perspective, it looks like every time there is more bad economic news, the price of gold goes higher. I cannot but think that at some point, an every-rising gold price will mean that economic disaster is a terrible reality: more out of work; more going hungary; more debts unpaid; more tea parties peopled by irrational, disgruntled whites who decry government spending as they wobble around with their fat asses firmly parked in Medicare and Medicaid wheelchairs. (more…)
Port Townsend is at the upper end of the Olympic Peninsula in Washington State. I am told that the miners departed from its harbor to head north to Alaska. But other ports took over, and the town stayed the same: a collection of old buildings bereft of madams, ladies, drunks, and miners. The buildings are now populated by tourist shops and wooden boat lovers.