In recent years, the price of gasoline has significantly risen. Simultaneously, the purchasing power of gold has consistently strengthened, benefiting those who have invested in the golden metal.
However, have you ever wondered which of the two has seen a bigger price increase? In other words, does an ounce of gold allow you to travel more or fewer kilometers today than it did 20 kilometers ago?
Gold vs. Gasoline: Which one is in the lead?
According to Incrementum AG’s "On the road again - The Gold/Gasoline Ratio 2024” report, since 2016, the price of gasoline (unleaded) in the United States has nearly doubled, going from just over $2.00 to $3.80 per gallon in the last 8 years. In addition, from the start of our millennium, the price of gasoline has almost quadrupled, despite the slight decrease experienced in the past two years, after reaching record levels in mid-2022.
The situation is completely different in the case of gold. In September 2005, an ounce of gold could buy 156 gallons of gasoline. Since then, even though the price of gasoline has doubled, the purchasing power of gold has quadrupled.
Compared to May 2023, an ounce of gold in May 2024 buys 16% more gallons of gasoline. And in a five-year comparison, between the end of May 2019, and the end of May 2024, gold can buy 41% more gallons of gasoline.
Gold: The Ideal Fuel
The upward trend of gold's purchasing power remains intact. From December 2023, gold investors have received more than 600 gallons of gasoline per ounce of gold.
This extremely positive trend is also evident when considering the significant improvement in fuel efficiency, which has approximately doubled since the late 1970s.
As a result, current automobile models can travel about 20,500 miles on an ounce of gold, whereas in 1978 the average was less than 5,000 miles. Therefore, gold has proven to be an ideal investment, offering not only stability and growth, but also exceptional performance in terms of purchasing power and efficiency.
This phenomenon highlights the importance of gold as a robust and stable investment, capable of protecting and increasing their holder’s purchasing power against inflation and market fluctuations.
Protect your money
Aktagold's mission is to help people around the world to protect their money from the economic and financial instability of their countries of origin, by providing them with access to saving in physical gold, safely stored in high-security vaults in Canada, an option that used to be reserved only for the wealthiest ones.
Contact us to learn more.