Gold vs Groceries – 1990 vs Today

This week, we’re taking a nostalgic look back at a beloved Christmas classic for a little lesson on inflation.

Plus, we’ll be reviewing some of the latest data from the World Gold Council, what the Fed pausing interest rates means for gold investors, plus a must-watch documentary from a Hollywood A-lister on gold.

But first, let's delve into the latest news that's shaping the world of gold and finance.

Millions of Americans Don’t Feel Ready for Retirement
A Betterment at Work Survey finds less than half of U.S. workers are confident in their retirement readiness. And nearly four out of five workers (78%) said their finances cause them anxiety.

Gold Climbs 2.3% after Fed announces Rate Hike Pause
The U.S. Federal Reserve decided to maintain current interest rates on Wednesday. 17 out of 19 Fed officials anticipate a reduction in the policy rate by the end of 2024, which could increase the appeal of gold and silver for investors.

Gen Z is Laser-Focused on Finances
Nearly one-third (32%) of Gen Z say couples should talk about money before a relationship gets serious, and among Millennials the number is even higher (40%). More than 7 in 10 Americans (72%) across all ages believe this talk should occur "well ahead of marriage or living together.”

Gold is a precious metal that has long been used as a monetary resource as well as a highly desired material for jewelry. What is the chemical element symbol for gold?

A. G
B. Go
C. Gd
D. Au

Scroll to the bottom of this email for the answer...

GOLD: A Journey with Idris Elba

The World Gold Council (WGC) has just dropped a gem of a documentary, and it's none other than "GOLD: A Journey with Idris Elba" – available now on YouTube.

In this documentary, Idris travels across continents to unravel the rich and often untold story of gold, exploring its significant impact on humanity and the world we live in.

What is it about gold that has people from all over the world so hooked?

So, grab your popcorn (or maybe some gold foil-wrapped chocolates for the occasion) and get ready to be swept off your feet. This is a film that promises to shine a new light on one of our most treasured assets. You're going to love every minute of it – we sure did!

Check it out here on YouTube and let us know what you think.

WGC 2024 Gold Outlook Released!

The World Gold Council's Gold Outlook for 2024 and let me tell you – it's like a gold enthusiast's dream read. Packed with loads of fascinating info, data, and insights, it's a fun read for any gold enthusiast.  

The WGC has mapped out what gold's future could look like in three different economic landscapes – the optimistic 'soft landing', the challenging 'hard landing', and the curious 'no-landing'. And it's all coming from some of the top gold researchers around the globe.

Some of the other key highlights include:  

• Gold rose more than 10% in 2023, defying expectations in a high interest rate environment.
  
  
• Why gold has had a lackluster performance during soft landings but, this time, geopolitics, multiple elections, and continued central bank buying may provide additional support.
  
  
• Why a global recession is still likely and should also encourage investors to hold effective hedges, such as gold, in their portfolios.

If you're anything like us – totally nuts about all things gold – you're going to eat this up. It's an eye-opener and a conversation starter rolled into one. So, why not dive in and see what gold has in store? We had a blast reading it, and we're pretty sure you will too.  

Check it out here.

Holiday Nostalgia or Inflation Wake-Up Call?

Remember Kevin McCallister's shopping spree in the 1990 holiday classic, Home Alone?  His modest $19.83 grocery haul offers more than just nostalgia – for many, it's a jarring reminder of inflation's real impact.

If you haven’t seen it in a while, Kevin gets a half-gallon of milk, half-gallon of orange juice, a TV dinner, a loaf of WonderBread, frozen mac and cheese, liquid detergent, saran wrap, a bag of toy soldiers, Snuggle dryer sheets, and toilet paper. Kevin uses a dollar-off coupon for a grand total of $19.83.

Now according to the Bureau of Labor Statistics inflation calculator, that same $19.83 would equal about $45.60 in October 2023. That's a 130% increase since November 1990. But real-world experiments tell a different story.

The CPI Story vs. Reality

One TikTok user is going viral, for replicating Kevin's shopping list and coming up with a total of $68.99, much higher than any CPI estimates. The experiment has garnered over 415K likes and thousands of comments, showing a total that is 248% higher than the 1990 prices.

The story got so much traction that USA Today and Fox News copied the experiment, reporting totals of $53.94 and $72.28, respectively. Those imply inflation rates of 172% and 264%, both much higher than the CPI’s official increase.

Shifting gears, let's compare these rising costs with the performance of gold and silver. Would investing in real money during that timeframe shield you from the effects of inflation?

Gold and Silver’s Returns – 1990 to Today

In December of 1990, when Kevin was booby-trapping his home, gold was priced at about $380/oz, while silver was at $4.24/oz. Today, they stand at over $2,000 and $23.00 respectively. That's a 426% increase for gold and 440% for silver.

Pretty impressive, but what does this mean for investors?

Clearly, gold and silver have not just stored purchasing power – they've increased it. If Kevin had bought equal amounts of gold and silver in December of 1990, and held them until today, his original $19.83 would be worth $125.80. He’d have enough money to buy the same grocery list twice!

If you don’t own any gold or silver, now’s the time to get some. Even a small amount can act as an effective hedge for your portfolio. As famous banker J.P. Morgan once said, “Gold is money. Everything else is credit.”

Buy Gold or Silver Today

That’s it for this week's GoldSilver Nuggets email. We’ll be back next week!

Best,

Brandon S.  
GoldSilver

Gold is a precious metal that has long been used as a monetary resource as well as a highly desired material for jewelry. What is the chemical element symbol for gold?

A. G
B. Go
C. Gd
D. Au

Answer: D. Au

The symbol "Au" for gold comes from the Latin word for gold, "aurum." The word "aurum" itself is thought to originate from an old Indo-European language root meaning "shining dawn" or "glow of sunrise."

In the periodic table, chemical elements are often abbreviated using Latin names, a practice dating back to the early days of modern chemistry. Latin was the language of academia and science during that period.