Usman Salis
⬤ Recent data shows buying one ounce of gold now requires 120 hours of work in the US—the highest level ever recorded. This measurement compares the dollar price of gold against average hourly earnings, and the current reading shows just how much the metal has surged relative to what people actually earn.
⬤ Americans need twice as many working hours to buy gold compared to just a few years back, and roughly six times more than at the start of the 2000s. Back in the early 1980s, it took about 80 hours of work to purchase an ounce, making today's figure particularly striking. The current spike stands out as the steepest climb in decades.
⬤ Gold's price appreciation tells the broader story. The metal has rallied nearly 1,500 percent since 2000, pushing the total global gold market value past 31 trillion dollars. That performance is more than double the S&P 500's total return with dividends over the same timeframe, which came in around 660 percent.
⬤ Measuring gold in working hours gives us a real-world gauge of affordability and purchasing power over time. With gold at record highs relative to wages, we're seeing both the strength of recent price gains and a fundamental shift in how asset prices relate to what people earn. This trend will likely stay central to conversations about wealth preservation, inflation protection, and market valuations going forward.
Usman Salis
