Indeed, but here it's something that has two well understood prices. One, currency, which doesn't change over time, and two, gold, which fluctuates but generally increases over time. And despite being composed of these other things it has a third almost-totally-unconnected price related to artificial scarcity! I think that is super neat. It may also signal that humans are totally insane, but no matter.
eh? currency then or now? Currency then was on the gold standard so the two didn't fluctuate.
Currency today, they target inflation of 2% / year by design.
re: insane price of collectibles
You are thinking like a salaryman. Think of one of great wealth with a flow of currency more than what one can sensibly spend money on - the market for these coins. The pleasure gained from owning the 20th rolls is not the same as the first. The utility gained less so. How about a rare collection of gold coins from 1850? Now that is something you can talk about over some cognac and cigars with a like minded fellow. An object of beauty, desire and a fantastic store of value for when you want to transport value across to the next generation.
Alternatively, you could park $10 million into a hedge fund and swap spreadsheets around the fireside chat - debating which manager was best defending the onslaught of the fed and its money printing?
Which one is less - shall we say - vulgar?
When the price of gold fluctuates, you have to be careful inferring meaning - is it the value of gold fluctuating, or the value of the currency fluctuating?
No, it's a very easy question to answer. How many cups of coffee would a gram of gold buy me?
Yesterday morning, the London gold fix was 803.117 GBP/oz; if i took my gram of gold to my local baristas and traded it, i would get 6.59 flat whites. Yesterday morning, the gold fix was at 798.532 GBP/oz; my gram would have got me 6.55 flat whites.
Whereas if i'd gone in this morning with 4.30 GBP in ready money, i would have got 1.00 flat whites. And if i'd gone in yesterday with 4.30 GBP, i would have got 1.00 flat whites.
You can do this analysis against benchmarks other than flat whites: cappucinos, espressos, and even things that aren't coffee. You will always find that the buying power of a unit of currency remains constant from day to day, while the buying power of a unit of gold does not. It's gold that fluctuates.
