In 1982 the US Mint changed the composition of the American penny currency from a composition of the penny form 95 % copper to only 2.5 % plus 97.5 % zinc in order to keep production costs of the Penny currency under 1 cent.
In 1982 , at that time, it was not appreciated in the least that the copper metal composition cost restraint reflected a corruption in the power and trend line of the U.S. dollar currency. Too much paper money and currency was being created by governments in relation to the true wealth and riches of the American society and economies were producing. American currency was being reduced and relegated to destructive forces. Gold , yet again , was on its historical march to the new champion and marker of real currency valuations.
Basically as more dollars get physically printed , the amount of gold owned by human beings remains the same. Hence more physical money - same gold as value. Hence it takes more dollars to buy a certain amount or measure of gold metal.
The British magazine “The Economist” charts economic valuations in relative costs of the Mc Donalds hambugers - Big Macs wheras others rank gold in relation to the price of a well maid tailored men’s suit. Such products now range in the $ 3,000 us dollar range. In the accepted ranking gold should be at the price of that $ 3,000 to an ounce of gold.
A similar comparison of the price of gold to the price of oil translates to a gold price of $ 4,000 .
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