Gold/Wis'n-Beer Ratio

If you’re like me you probably have an Oktoberfest on the horizon. The month of pumpkin-flavored everything is also the time to enjoy a smooth German beer on a sunny patio.

It seems beer will always be in demand, no matter what the market or global economy does. Appropriately, a curious chart involving gold and golden ales is making its way around the internet.

You see, according to the ninth annual
In Gold We Trust report, the best comparison to gold is beer!

A report by Liechtenstein-based asset manager Incrementum analyzes gold as a monetary asset, not as a commodity.

“Many comparisons from everyday life show that gold is currently not valued at an excessively high level,” states the report. This is in contrast to the fact that the report also found “the competitive position of gold relative to paper money and other asset classes has improved considerably in recent months.”

The report goes on, “While a ‘Mass’ beer (one liter) at the Munich Oktoberfest in 1950 still cost a converted EUR 0.82, the price in 2014 stood between EUR 9.70 – EUR 10.10 (average EUR 9.10).”

“Thus the annual price inflation of beer amounts to 4.2% per year since 1950. If one measures the beer price in gold terms, then once received 97 liters of beer per ounce of gold in 2014.”

Thus the “beer purchasing power” of gold is relatively high.

The report leaves investors and beer lovers with one last message – with the way things are going, beer liquidity is expected to rise, so to speak.

Good investing,

Samantha Solomon

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