History of Gold Ounce Price Comparison To A Loaf Of Bread
The Old Testament states that in 600 BC, during the rein of King Nebuchadnezzar’s, a loaf of bread was worth 350 loafs of bread to one ounce of gold.
Bread loaf just under one kilo size, not our reduced size loaf of today.
This historical record is the price of bread compared to gold price which give s historical precedence to using this method in calculating gold versus bread loaf prices.
Over the last 100 years it has varied from 300 to 388 loafs per ounce of gold so has been good parameter for historical records.
Bread costs have increased 123% in Australia from 1990 to 2008
Compared to world bread increases which is less than half ours of 50-60%
But this does relate to our unique position here in Australia, as we have monopoly supermarkets controlling our food source and Calculations based on Bread loafs in Modern day Australia only
In 1997-98 gold was $480 per ounce and bread cost $1.60 or 300 loafs of bread per ounce
In 2007 -08 gold was $800 per ounce and bread cost $2.50 or 320 loafs of bread per ounce
In 2010 gold is $1360 per ounce and bread cost $3.50 or 388 loafs per ounce of gold
After hundreds of year’s first time historical ratio is out.
But this will be the final ratio I use 388 to one ounce gold
That can mean we are in for future food price increases above our historical 100 year records.
A Stable market of 320 -350 loafs would be average for stable government and prosperous times
Below 320 are deflationary times and above 350 would account for inflation .
Estimations at factor 388 x1 equates to following bread to gold ratio costs.
2010 Gold $1350 equates to 388 loafs of Bread at $3.47 per loaf
2015 Gold $2,1425 equates to 388 loafs of bread at $6.25
2020 Gold $5,000 equates to 388 loafs of bread at $12.90 per loaf
2020 Gold $10,000 equates to 388 loafs of bread at $25.90 per loaf
Gold price has been calculated on food price increases per annum
2010 -2015 of 10-15%
2015 to 2020 of 15to 50%
2020 to 2030 of 50%
These are estimates only based on estimated food price increases resulting from hydrocarbon shock price increases until new clean technologies are invented.
This are my predictions as September 2010-09-05 Wayne Sedawie
History Of gold coins
Gold has been used to make coins since the invention of coinage.
Gold coins were considered to be the Life blood of Mediterranean trade way back in the 2nd millennium BC.
These lands between Euphrates and Tigris are now known as Egypt and these coins were crude shapes and often chunks of gold different purities.
In 6th centenary BC Lydia ,now Western Turkey minted first controlled weighed gold coins .
Greek and Roman empires followed minting gold coins with emperors head stamped on one side.
Alexander the Great conquered Persia and took over 700,000 troy ounces of gold back to Greece.
Rome minted hundreds of million of gold coins on a massive scale as these gold coins were spread over the entire Roman Empire including Britain
Europe also produced popular gold trading coins
The Austrian gold ducat was a large coin 40 mm diameter.
France produced the famous rooster gold coin
Russia minted millions of 5 n 10 Roubles gold coins
Britain produced million of Gold sovereigns and half sovereigns
USA minted the famous Indian head and Eagle gold coins but in the Depression of 1933 the USA re called all its gold coins and made it illegal to own gold coins.
Today Australia is one of the world major producer of gold and Gold coins are minted at Perth Mint and royal Australian mint
Popular gold coins are.
The Australian Nugget
Lunar gold coins including year of the tiger and Australia’s mascot the Koala gold coin.
Gold coins are mostly one ounce, half ounce,1/10 ,1/20 ,1/25 and even smallest sizes of 0.5 grams
Today It is important to understand Fineness of gold coins-
Other metals are mixed with gold to make the coin more durable as pure gold is soft and coins are sometimes harshly treated and normal wear and tear has to be kept to a minimum.
Karat weight is a recognized unit of fineness gold equal to 1/24 part of pure gold.
Pure gold smelted is 1000 fine.
Correlation between karats and fineness
24 karats = 1000 fine
23 karats = 958.3 fine
22 karats = 916.6 fine
21 karats = 875.0 fine
20 karats = 833.3 fine
18 karats = 750.0 fine
16 karats = 666.7 fine
14 karats = 583.3 fine
10 karats = 416.6 fine
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