• 1 hour Rio Tinto To Spend $1 Billion To Reduce Its Carbon Footprint
  • 22 hours The Ultra-Wealthy Lost $140 Billion In One Day
  • 1 day Three Energy Casualties In The Coronavirus Crisis
  • 2 days Markets Crumble As Coronavirus Panic Peaks
  • 2 days Cobalt May Be The Key To Clean Hydrogen Fuel
  • 4 days How Taxpayers Are Bankrolling The EV Revolution
  • 5 days The Coronavirus Is Crushing China’s Car Market
  • 6 days Fighting For Survival In The Streaming War
  • 7 days Want A Job? Forget About A Bachelor’s Degree
  • 7 days Another Major Car Maker Is Backing Hydrogen
  • 8 days Are Americans Finally Sold On Soccer?
  • 8 days Is The Tech Bubble About To Burst?
  • 9 days Coronavirus Could Cost Tourism Industry $80 Billion
  • 9 days What Web Traffic Trends Can Tell Us About The World
  • 9 days Miners Face Greater Headwinds
  • 10 days Boris Johnson Proposes Billion Dollar Bridge To Northern Ireland
  • 11 days Goldman Slashes Oil Price Forecast By $10
  • 12 days Tesla Raises $2 Billion In Share Selloff
  • 13 days What The T-Mobile Takeover Of Sprint Really Means For Markets
  • 13 days The U.S. Has Charged Huawei With Racketeering And Conspiracy
How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

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