Commodities History Charts

Well it doesn’t really exist yet. I just spent a good load of my time developing my own personal commodities index. It’s based entirely on ratios of Gold, silver, commodities, such oil, softs, grains and a few Indexes (The Dow, S&P and the Rogers’ Intl. Commodity Index). It also includes currencies. Taking a look back at it now just thought there were a few things that stood out I thought were worth sharing.

The Inflation Theory – Historical evidence shows how an ounce of silver was often used as a days payment of a dollar, hence the Silver Dollar. At a current price of silver at 13.59 and the Dow at 12309, I arrived at a ratio of 905.74. The price it would have cost to buy the Dow in 1980 just before charging off onto the longest bull market in history!

The Gold/Dow Ratio – In that year as commodities and stocks transfered batons, you could have bought the Dow for all of 1 – that’s one – ounce of gold! This happened before in April 1942 (2.7 oz.) and in 1933 (1.6). Gold in addition has matched silver at a ratio of 16 – compared with 46 today.

Your house for my coins? – From 1950 till around 1998, 48 years, the average price of a home in the US would cost $110,000. In Gold ounces in 1980 that would be about 135. Today (after the Real Estate boom) it’s more like 348. I would figure that a house in Spain in the 16th century would cost somewhere in between – depending on the market.

Black Gold – In 1980 you were able to buy about 12 barrels of crude for an ounce of gold. Today its about 11. Many point to times when the ratio was closer to 16.

I couldn’t find a lot of information on commodity prices from historical periods. I’m sure that as this commodity cycle continues the information will become more available.


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