The GoldSilver Team
APR 19, 2020
“The true value of gold is what you can buy with it.”
That’s how Mike Maloney and Ronni Stoeferle of Incrementum begin the concluding video in their series.
As Ronni points out, “one of our most famous charts shows the gold/beer ratio—in other words, how much beer you can buy for one ounce of gold.
Here’s his long-term chart, which he and his team develop each year during the time of Oktoberfest in Germany (September). It shows how many liters of beer can be purchased with one ounce of gold.
Beer drinkers could buy 115 liters at last year’s Oktoberfest with one ounce of gold. They could buy almost twice that in 1980. In the 2011 run-up, an ounce would fetch 137 liters.
This has practical implications. If the next crisis pushes investors into gold, those who own metal now are likely to gain purchasing power. And you know what we think about the likelihood of some type of crisis.
As Ronni concludes, “gold protects against the long-term loss of purchasing power.”
We hope you enjoyed this series of videos with Mike and Ronni. Incrementum is working on their next gold chart book, so look for more videos in the future.