Economic Experts?

[IZRSSS]

$4258 bought 121 OZ of Gold in 1969...
121 OZ x $1300 + = $157,300+

I have no idea why this topic strayed off into the gold market. Please keep in mind...this question has absolutely nothing to do with investment potential.  In the most basic of terms...What would $1.00 buy you in 1969? And...What would this same item cost you in 2010?  

Perhaps this question needs to be addressed by an Economic expert, hence the title of this thread, "Economic Expert?". I am absolutely certain there is a conversion for determining equivalent buying power (dollar's) for 1969 as it relates to 2010. I think I'll give this question to my son who is a Senior in college. If he can't answer this perhaps he can give to one of his professors. If this information becomes available I will post my findings.

Thanks for your statement Tom.

[Dusk_Blue_Z]

Marty, the CPI (like Gary pointed out) is the broadest measure used to track purchasing power. It might not capture every variance in prices, but its the 'generally accepted' methodology for tracking purchasing power.

I agree that it might sound odd that the same amount of money in 69 will only get you a Chevy Cruise today, but that just might be telling us a Camaro today is grossly overpriced (or a 69 Camaro in the day was grossly underpriced).

As far as technology advances are concerned, they are essentially 'baked into' the CPI figure.

If you're looking for dollar purchasing power, CPI is what to use.

FWIW, I was an Econ and Finance major, so I love this stuff.

[IZRSSS]

Thank you DBZ for sharing this information. However, I respectfully disagree with the use of CPI for this application (as I stated earlier). Just stating that technological advances are "baked into the figure" only drives me to find a more appropriate measure. As advanced as our society is (I obviously missed the boat on this one) you would think there is something out there much more accurate to go on. If there isn't such a measure, then perhaps this would be an excellent idea for an Economic thesis.

  

[lakeholme]

NADA Guides still has a classic guide. I thought it was gone like Gold Book.

[IZRSSS]

Here it is...the only information asked is; Year-1969, Engine size-350, and is it RS or SS. No other options are included in this price...http://www.nadaguides.com/Classic-Cars/1969/Chevrolet/Camaro-Super-Sport/2-Door-Coupe/Values.

You can see by these totals how skewed CPI really is.

Thanks Phillip

[Dusk_Blue_Z]

Marty, I'm sure someone has done some sort of work tracking the historic purchasing power of a dollar on a certain item (maybe the price of the deck of cards over the past 30 years). But that price change data is only good on that item (ie, a deck of cards). There might be some correlation between that item and another item, but you couldn't apply that data to a Camaro for instance, since the Camaro would probably follow a different price pattern.

But what you could do is (if one had the data), compare the MSRP of a base Camaro from 1969 all the way to 2010, then average the % change each year. That way you are incorporating the technology advances specific to a base Camaro as they become 'standard technology'.

What do you think?

[IZRSSS]

EXCELLENT IDEA!

[IZRSSS]

DBZ,

Here are the percentage increases for the base Camaro V8, from 1967 through 2002 and then leap forward to 2010;

• Combined MSRP percentage increases for each of the 37yrs = 38.66%
• The average MSRP for each of these = 1.07%

If you take the base price for the First Gen V8 of $2,726 X 38.66 the total is $105,387.16...can this be right?

If you would like I can send you the link to the MSRP's...just send me a PM.

Thanks

[mopar346]

I believe the McKinley act still allow for the ownership of $100 face value of gold coins, did it not? When was collecting gold coins made completely legal again?

[tom]

Gold stuff (coins, jewelry, teeth, etc) was allowed, not bullion. When that regulation changed (and no I can't remember what year) gold was deregulated, and the price quickly moved from 32 per ounce, to more than 800 per ounce. As far as I am concerned your best benchmark for price comparison is the government published cost of living index.

[Dusk_Blue_Z]

In brainstorming with Marty, we've devised a method in determining the value of the first gen's, in today's prices. We started with looking at the change each year in the MSPR of a base V6 Camaro, from 1967 to 2010. Then we averaged the price changes and arrived at a 5.51% average annual price change over the last 43 years. Compared to the CPI in the same time frame of 4.41%.

For those interested, we also came up with a factor. The factor will help determine (roughly) what the original MSRP would be in today's market. Basically the Camaro Inflation measure. Until I come up with a slick plug-n-play type application, this will have to do:

1967: 10.06312
1968:  9.67371
1969:  9.46198

For example, if you have a 1969 Camaro with an MSRP of $4,490, multiply it by the factor of  9.46198 and you'll get today's estimated MSRP ($42,483).

Keep in mind that these are estimates, but I feel they are a more accurate measurement than the CPI as it pertains to Camaros. I know the MSRP can be subjective from the fact its rarely an actual price paid for a car, but it is probably the most complete record of the price of a Camaro (since MSRP's are generally the same on a base V6 model in Minneapolis and one in Reno).

Anyway, let me know what you think.

Nick

[IZRSSS]

I can't even begin to tell you the effort Nick has dedicated to this thread. Seems like he has been working none stop for the last 8 hours. There are several charts, figures, and formulas he has developed and used to arrive at these basic formula's we can all use.

Hats off to you my friend. If there is anything you need, don't hesitate to ask...just don't ask me to order you an original AIM.  

[IZRSSS]

I thought I would share this information from,” What’s My Car Worth” TV.  Hey, it was free so I decided what the hay?  One of these years I hope to have Jerry give it a legitimate appraisal.

Just a brief history; I sent a couple of pics to; mycar@whatsmycarworth.tv along with information on the car. I mentioned the yr, model, and options.  I did not mention the special paint. I didn't think it was necessary, nor did I think Keith Martin would know what the heck I was talking about. Nothing scientific here, I just find it interesting because Keith & Nick's figures are really close (Reply #25). Although I would have to believe Nick's method is more scientific. Here is what Keith had to say about the car while it was on the air...

“In this week’s mailbag Marty has sent us information about this 1969 Camaro RS/SS coupe. It’s fully restored but what really sets it apart is it has 26 factory options. These cars are not highly collectable. They built over 225,512 in '69 so it gets its collectability rating of a "C". And this car only has a 300hp engine. If it comes to market I believe it will sell for 40K.”

It’s all about HP… the Z’s & the BB’s, 350hp or >. However, in this volatile market place I couldn’t be happier with his appraisal on the fly.

[Dusk_Blue_Z]

Thats cool, I have that on my DVR. I'll watch it tonight.

Although, I think the math we used was to get an idea of how much money it would take to buy your car brand new, in 2011 dollars. Thats not necessarily an appraisal. I think its more of a coincidence that our math was in line with the brief appraisal. If you bought an Impala in 69, its probably not going to be worth $40k today.

But now your car has a TV premium added to it, thats got to be worth at least $20k

[lakeholme]

Interesting!
Congrats on the TV appraisal.