A common mistake that people make is assuming that gold value is the same as gold price. This is completely inaccurate.
First we will address the gold value.
For centuries, gold has maintained a fairly constant purchasing power. 38 years ago, 1 ounce of gold would buy you a nice tailored suit or about 350 loaves of bread. Today, 1 ounce of gold will still get you a nice tailored suit or around 350 loaves of bread.
Now let’s take a look at the price of gold.
In 1978 gold was $480 and bread was $1.60 per load (around 300 loaves of bread). In 2008 gold was $800 per ounce and bread was $2.50 per load ( around 320 loaves of bread). Today gold is $1167 per ounce and bread is $3.00 per loaf ( around 389 loaves of bread)
The variable here is not the value of gold … It is the number of fiat dollars that it took to buy that ounce of gold.
With all of the inflation and quantitative easing in the United States and around the world it takes more and more dollars to buy the same items.
I hope this provides some clarification around the differences between value and price.