One Ounce of Gold in 1982 vs Today: The Truth About Actual Purchasing Power

When it comes to the peak of gold prices, many people think that the recent record high is the all-time high. However, if we consider real purchasing power instead of just nominal USD figures, the truth is quite different. 1982 was actually the time when one ounce of gold reached its highest value relative to the circulating money supply — about 16% higher than today.

Although gold has surged to $5,600 per ounce today, the USD has been printed at a much faster rate than in the past. This means that the actual buying power of 1 ounce of gold today is about 16% lower than in 1982. In other words, gold’s purchasing power has eroded even though its nominal price has increased.

One Ounce of Gold Can No Longer Buy a House: The Story of Money Losing Value

To understand better, let’s look at a specific real-world example.

In 1982, one ounce of gold could buy a small house. At that time, the money supply in the economy was limited, making gold extremely valuable relative to the amount of money. One ounce of gold was truly an asset with very high absolute value.

Today, one ounce of gold costs around $5,200. However, a similar house from that era now costs about $500,000. The result? One ounce of gold NO LONGER can buy that house, even though the gold price in USD has increased significantly. This isn’t because gold has inherently lost value, but because cash has lost value.

Money Loses Value, Not Naturally Appreciating Assets

Many people feel that “everything is getting more expensive” — houses, cars, all goods. But the truth is, money is constantly losing its value. It’s not that assets are naturally appreciating; it’s that money no longer buys as many goods as before.

As more money is printed, “high prices” become normal:

• A house costing 20 billion VND → no longer a shocking number
• A car costing 5 billion VND → becomes normal
• Gold at $10,000/oz → no longer surprising

However, the real danger is that wages of workers do not keep pace with this rate. They feel everything is more expensive, but their income remains stagnant.

Gold Only Preserves Value, Not Helps You Grow Wealth

This is a crucial understanding: buying gold only helps you preserve your current assets’ value. One ounce of gold today still protects you from losses due to fiat inflation, but it doesn’t make you truly richer within the expanding dollar monetary system.

Moreover, you might even fall behind relatively as money continues to be issued. Why? Because asset owners sensitive to new money (like real estate or currently Bitcoin) will become wealthy very quickly. Meanwhile, those who only hold gold or cash will stay put or fall behind.

Break Free from the “Dollar Servitude”: Assets with Growth Potential Are Needed

To truly improve your financial position, you need an asset that not only preserves value but also has the potential to grow faster than the rate of money issuance.

History shows: in the 1990s in Vietnam, real estate was such an asset. It not only preserved value but also increased its standing within the economic system. Those who owned real estate back then successfully escaped the “dollar slavery.”

Currently, Bitcoin plays a similar role. With a current price of $71,060, Bitcoin is not just a store of value but also has sustainable growth potential. It outperforms gold in growth capacity and can help you elevate your position within the continuously expanding global monetary system.

Looking back: one ounce of gold remains a good hedge, but it only protects against risk, not creates wealth. If you want to beat monetary inflation and truly become wealthier, you need to find assets with sustainable growth potential and strong upward momentum.