Comparing The Cost of Goods From 1920 To Today

EDITOR NOTE: Here’s a curious piece around the cost of goods to consider. In 1921, exactly 100 years ago, the average home cost around $6,296. That was equivalent to 314 ounces of gold (as gold was $20 per ounce). Gold still backed all dollars printed and was actually in our US coinage. Today, the average American home costs around $408,800. Now here’s the kicker: in today’s gold market the same 314 gold pieces in circulated condition are worth $588,750 ($1875 per coin). In mint condition (MS-65+), the same coins would be worth $1.57 million ($5,000 per coin). Either way, you see the effect of inflation, and how gold--whether newly minted, common pre33 coins in poor condition, or coins in graded mint condition--all outpaced inflation. This tells you two things: first, gold is a supreme hedge against inflation, and second, gold numismatic coins provide supreme growth over and above its safe-haven properties. As inflation is about to accelerate toward unprecedented levels, non-CUSIP gold coins may be the best investments to hold if you seek safety and growth in the years to come.

Well, we've officially re-entered the roaring '20s, and while it doesn't seem like we're off to the greatest start, it can only get better, right? Now things are surely a lot different than they were 100 years ago. For starters, our main source of entertainment back in the '20s was listening to the radio, and "stream" was only a term used to describe a small river. But one of the most significant differences between then and now is the cost of goods.

You won't believe what a beautiful two-story house in the suburbs, an apartment in New York City, or even a shiny new car cost back in the day. The prices seem like pocket change in comparison to today's figures. It might even tempt you to hop in a time machine and travel back to 1920. But it's also important to remember that everything is relative.

As we review these costs, don't forget that the average household income in the United States in 1920 was approximately $3,269.40–that's about $42,142.08 today, with inflation–so keep that in mind as we travel back 100 years and do a little window shopping.

Originally posted on Country Living