Wimpy-Gold Watch

Persuant to the previous post I thought I would give an update on the Wimpy-burger purchasing power of gold.

In Jan 2010, when I wrote Wimpyflation, I reported that one could buy 260 burger + chips combos with one oz of gold, 2.5 times more food than an oz got you in 1972.

Today, in June 2011, according the latest menu,  your classic wimpy burger and chips costs R33.95.  The current rand price of gold today is roughly R10,350/oz, meaning that one oz of gold gets you 305 burger + chips combos.

That’s 17% more food than 18 months ago, WITH THE SAME GOOD-FOR-NOTHING-CANT-EAT-IT-CANT-EARN-YIELD-OFF-IT LUMP OF METAL.

Wimpy burger deflation since January 2010? -15%.

In the free market, prices always fall…