[bubuga]

> You are taking this from the wrong angle: the fact that gold price changed from $1700 to $1050 to $1200 says nothing about value of gold - instead it says everything about the value of dollar.

If what you say was true, how would you explain the fact that gold prices also fluctuated wildly with regards to all currencies used in the world?

> in 1915, or so, Henry Ford released Model T, first mass produced car. The price of Model T at that time was about $300 dollars, which was equal to 20 ounces of gold. Now, 100 years later, 20 ounces of gold still can buy you a brand new car, while 300$ only buys you set of tires and some gas.

You need to discover what inflation is. Adjusted to inflation, $300 in 1915 are equivalent to around $7k in 2016.

Furthermore, prices are dictated by the purchasing power of the target market which also varied significantly since 1915.