It’s 1967, and you have $2,461. You can buy a new Mustang, or you can put that money in gold. Most people pick the car, and it’s a great pick. But what’s truly the better investment?
Today, Hagerty values a classic ’67 Mustang at $34,267.
A Great Run In Dollars
Your $2,461 became $34,267 if you stuck with the car. That’s 10 to 14 times your money. Ford built 472,121 that year as the Camaro and Firebird arrived: 356,271 hardtops, 71,042 fastbacks, and 44,808 convertibles. And 28,800 buyers chose the big 390 V8.
At this year's auction, 40 of 42 consigned ’67 Mustangs sold, a 95% sell-through rate. Prices ran from $13,200 to $726,000. Hagerty's pricier GT trim is up 10.7% over three years.
A 1967 dollar buys what $10 does today, according to the Consumer Price Index. The index stood at 33.4 then and is about 335 now. Your car’s starting price, in today’s dollars, is about $24,700.
New Compare It In Ounces
In 1967, gold’s official price was $35 an ounce, a level it had held since 1934. Your $2,461 buys about 70 ounces. Today the same Mustang is worth 6 to 8. The fastback started at $2,592, about 74 ounces. The convertible started at $2,698, about 77 ounces.
Gold is about $4,187 now. Your 70 ounces would be worth about $294,000. Prices rose about tenfold. Gold rose about 120-fold.
59 Years, Per Year
In dollars, the Mustang grew about 4.1% to 4.6% a year. Inflation ran about 4.0%. Gold averaged about 8.4% a year, or roughly 4.3% after inflation. At 8.4% a year, money doubles about every nine years.
Where the Numbers Stay
Over one year, gold is up about 4.4%. Over three years, it’s up about 119%, from roughly $1,913 to $4,187.
In the Safe
Gold has no maintenance schedule. A safe or vault is a line item; it’s not a long checklist of maintenance items. You’d need the right buyer to get top dollar for the right classic car, too. Whereas gold trades in London, New York, and Shanghai on weekdays.
Seventy ounces weighs about 4.8 pounds. It fits in one hand and would fit in a small safe with room to spare. You won’t have to devote an entire room to storing the asset. That’s Empire Money: 70 ounces in a safe, untouched since 1967.
Seventy Ounces
You’d have chosen a dealership, or a kitchen table, with $2,461 in your hand. If you own a ’67 Mustang, you’re in good company. Keep it for the joy of it. And keep one number in mind: 70 ounces cost $2,461 in 1967. They’d cost about $294,000 today. If you had chosen the precious metal, you would have seen a whopping 11,894% return at today’s current rate. That doesn’t even include selling at gold’s all-time high of $5,589.38/ounce earlier this year in January.
— U.S. Gold Bureau Team
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byUnited States Gold Bureau