• 15 hours Tesla Tumbles After Battery Day Fails To Impress
  • 22 hours Three Energy ETFs To Watch This Decade
  • 2 days What To Do With $2 Trillion In Suspicious Bank Transactions?
  • 3 days How The Stock Market Predicts Electoral Victory
  • 3 days Tesla's "Battery Day" Could Deal A Blow To Cobalt Miners
  • 4 days New TikTok Deal Hopes To Bypass National Security Concerns
  • 4 days Where Will Gold Go From Here?
  • 5 days COVID-19 Is Fueling A Pastic Waste Crisis
  • 5 days Gold Output Set To Decline
  • 6 days Uber And Lyft Look To Go Electric
  • 7 days COVID-19 Is Crushing Palladium Demand
  • 8 days This ‘Once-Boring’ Tech Company Is Now Super Hot
  • 9 days Will Air-Based Protein Be Our Future Food?
  • 9 days Google Pledges To Go Carbon-Free By 2030
  • 10 days A New Twist In The TikTok Saga
  • 10 days Gold Inches Closer To $2,000
  • 11 days Delivery Drones Are Coming Sooner Than You Think
  • 11 days Traders See More Volatility Ahead For Commodities
  • 12 days How COVID-19 Is Transforming The World's Sovereign Wealth Funds
  • 12 days Electric Vehicle Demand Set To Outpace Battery Metal Production
What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

Mining.com

Mining.com

Mining.com

MINING.com is a web-based global mining publication focusing on news and commentary about mining and mineral exploration. The site is a one-stop-shop for mining industry…

Contact Author

  1. Home
  2. Markets
  3. Other

66-year chart of beer vs gold price may lead to (heavy) drinking

Incrementum's 11th annual In Gold We Trust report analyzes gold primarily as a monetary asset and not as a commodity like say hops or barley.

The Liechtenstein-based asset managers conclude that "the competitive position of gold relative to paper money and other asset classes has improved considerably in recent months" and have 169 pages of charts and tables to prove it.

The Economist has its Big Mac index to rate the over- or undervaluation of currencies, but you have to agree with Incrementum that when looking at a suitable comparison to gold, beer is much more appropriate:

Beer drinking gold aficionados should therefore expect the metal's beer purchasing power to increase

According to the authors Ronald-Peter Stoeferle and Mark J. Valek, a “Maß” beer (one liter) at the Munich Oktoberfest in 1950 cost a converted €0.82, the price in 2016 was €10.55.

In 2016 you'd get 111 liters of beer per ounce of gold and the annual price inflation of beer therefore amounts to 4.2% per year since 1950.

Historically the median is at 87 litres making the “beer purchasing power” of gold at the moment above average.

When gold hit record highs above $1,900 in nominal US dollar in 2011, an ounce would only get you 138 litres. The driest year was 1971.

Not surprisingly, the peak occurred in 1980 at 227 liters per ounce of gold when gold topped out at $850:

Incrementum believes "it is quite possible that similar levels will be reached again. Beer drinking gold aficionados should therefore expect the metal's beer purchasing power to increase."

This gold chart will lead to more beer drinking

(Click to enlarge)

By Mining.com

Back to homepage

Leave a comment

Leave a comment