In 1912 the price of a top quality men's tailored suit was about the equivalent of an ounce of gold.

[lacrew]

4. An old Adage

This link shows a suit cost $1.98-$5.98

http://www.gti.net/mocolib1/prices/1912.html

I found gold was around $19/oz:

http://www.nma.org/pdf/gold/his_gold_prices.pdf

The adage is that 100 years ago, an oz of gold would buy a really, really nice suit....and it does today.

Seems close enough to accurate - gold is around $1,600, which would be a pretty nice suit.

The point of the adage is that gold does not increase in value...its increase in value is really just a reflection of inflation in the dollar. You can probably come out ahead with gold, if you get in and get out, at the right points in time...but as a long term investment strategy, it really isn't going to outpace inflation.

I tend to agree. If I had bought gold 5 years ago, and sold it today....I would be a genius. If I bought it today...well, in five years, I may not look like a genius anymore.

I have never bought gold (other than as jewelry)...I suppose there is some security in its intrinsic value, in case of armegeddon...IF you actually hold the gold. Paper gold - no way. It offers no hedge against armegeddon.

Just my humble opinion.