Value of a Dollar – 2016 versus 1932 – Based on the Cost of Gold (What's on Kyle's Mind)
The price of gold moves in opposite directions to the value of the US dollar. The dollar is 1/60th of what it used to be worth in 1932. Based on the price of gold, in 1932 one ounce of gold was worth $20.00. A $20 Dollar Gold Piece contains one ounce of pure gold which is why it was called a $20 Dollar Gold Piece. Today, in 2016 one ounce of pure gold costs $1,2000.
Do the math and you can see that today’s cost of one ounce of pure gold is 60 times what it cost in 1932, so inversely, this means today’s dollar has devalued by 60 times.
According to the U.S. Mint , there are currently 147.3 million ounces of gold in Fort Knox, KY. At a current price of about $1,200 per ounce, this is worth 176.7 billion dollars. Now divide this by 60 and you end up with a value of 2.9 billion dollars.