Now that’s what I call inflation!!

Inflation means that the prices of goods become higher. The ECB is proclaiming that a 2% inflation rate is good for our economy.

This means that something that costs you EUR 100 now, will raise to a level of EUR 102 the next year.

Bear this in your mind.

Today I was looking at my collection of golden coins from the beginning of last century.

Back in the Old Old days, people could really pay in gold coins, thanks to the Golden Standard.

One of those coins was the beautiful Ten Guilder or “Gouden Tientje” as we say in Holland.

This golden coin had the exact value of 10 guilders in gold. The amount of pure gold in this coin is 6,05 grams.

Now the Math comes in.

1 - Guilder to Euro calculation
With an exchange rate of 2.20371 against the Euro, 10 Guilders are the equivalent of 4.54 Euro’s

2 - The Gold calculation
The present Gold price is about EUR 34.85 per gram.

Bring 1 and 2 together
With the equivalent of 6.05 pure grams of gold, the value of the Gold 10 Guilder piece becomes around EUR 210.00 or in Guilders 462.00 against the present gold price. But in the Old Old days, the value was 10 Guilders.

In other words, what once was 10 Guilders is now worth an amount of 462 Guilders or 210 Euro’s. So 46,2 times higher!

462 -/- 10 = 452 price difference in Guilders.

In other words: This is an staggering inflation of 4520% over the last century.

And “they” say gold prices are not manipulated and people are not fooled ..... yeah!