Once again the Pollyannaish among us are trotting out statistics that suggest we shouldn’t get alarmed about gas prices. For example, on an inflation-adjusted basis gas is well below previous peaks. Or, that a gallon of gasoline costs much less than a gallon of simple bottled water.
As if that is any consolation to the involuntary part-time construction worker filling up his pickup truck! Why not go to the extreme? Look at the cost of gasoline relative to gold. An ounce of gold will now buy twice as much gas as it did as recently as October 2008. (That’s depicted below, with the vertical scale in reverse order.)
So if that construction worker happens to have a gold brick in the pickup bed, he’s just fine. He can fill up the tank and then buy a whole fleet of nice used trucks. Below is the dollar amount behind the Manheim Index (a mix-, mileage-, and seasonally adjusted measurement of wholesale prices) measured in gold.