SourceToday Apple announced its market value to be $500 billion dollars after a massive stock surge Monday. The tech giant's valuation is now nearly halfway to the 10-figure mark, with speculation Apple will launch iTV later this year driving shares to new record highs. Yet, Apple still has a way to go to become the most valuable company of all time. If Apple shares continue to hit new record levels, its market cap will reach $500 billion when the price reaches $537.
Still, shares will need to rise another $100 above that level to put Apple in contention for the most expensive company ever.
Exactly, same thing with the economy people are thinking its getting better because stocks are going higher but they forget how much the dollar has fallen in recent years. Doesn't matter how high your valuation is if the dollars that make up that number are worth much less.
1776-1932 : Gold is worth $20 / ounce. 2012 : Gold is worth $1725 / ounce and will most likely top $2000 this year. That's a 100 times increase or 10,000% percent inflation.
It says in the article, Microsoft in the year 2000 had around $650 billion market cap.
$876,981,118,788 2012 dollars.
The dollar was incredibly unstable when it first debuted. I think 1936 dollar compared to the 2010 dollar would be a much better comparison.
100 times increase over about 235 years is more like 2% inflation. Good try though, A for effort (or being off by a factor of 5,000, however you want to see it.) http://www.wolframalpha.com/input/?i=x^235%3D100
All of the inflation occured from 1932 to the present.In 1932 the Dollar was redeemable for 1/20 ounce of Gold, i.e 1 ounce = $20. It was in 1933 that the Dollar was de-coupled from Gold. At the current Gold value of $1,735 it is "only" about 8,500% percent inflation ( I did that in my head @ 6 a.m. before any coffee, didn't even need to post a bunch of formulas to "impress" you), and as I said, Gold will most likely hit $2,000/ounce this year. 100x times increase from $20 to $2,000 is 10,000%. Good try to spin reality using false data and GIGO methodology though.Originally Posted by jrbroad77
Everyone talking about gold brings up an interesting point - if you graph the stock market since 2000-present in terms of gold, the stock market actually lost quite a bit of money over the last ~12 years. Or you could just plot gold or a Gold ETF vs. the DJIA. Or even if you go from ~1970 to present, Gold vs. stock market, gold outperformed by over double. Back on point, well, Apple's value still has grown a lot even plotted against gold and other commodities. Of course not as much as it has in $ terms, but it looks like it outperformed gold over the last ~10 years.
100 times increase over about 235 years is more like 2% inflation. Good try though, A for effort (or being off by a factor of 5,000, however you want to see it.) http://www.wolframalpha.com/input/?i=x^235%3D100
If you want to eyeball the numbers, with 10% interest, using the rule of 72 you double your money every ~7 years. So do 2^x = 100. x = ~6. 6 * 7 = 42. If there was actually 10% inflation over the past 42 years, 1970 gold would've been worth $20.
The math behind it - suppose you have 10% inflation, over 1 year if you start with $1, it's now $1.10. Over 2 years, it's $1.10 * 1.10 = 1.10 ^2. Over 235 years, it's 1.10 ^ 235. the number 1 denotes 100%, 0.1 is 10% etc.
/math lesson
I find it hilarious in discussions that people bring up oil companies who have to deal with hostile suppliers and orwellian government taxation to bring in a 12% profit. However, Apple can sit nice and pretty at over 30% profit and people somehow seem fine with it.
The definition of inflation is the percent increase on an annual basis. If gold increases 10,000% over 100 years, that's not 10,000% inflation. If I put money in the bank now and get 8% interest on it, it'll double in perhaps 10 years - that doesn't mean it's 200% inflation when it doubles.Originally Posted by Jagged_Steel
All of the inflation occured from 1932 to the present.In 1932 the Dollar was redeemable for 1/20 ounce of Gold, i.e 1 ounce = $20. It was in 1933 that the Dollar was de-coupled from Gold. At the current Gold value of $1,735 it is "only" about 8,500% percent inflation ( I did that in my head @ 6 a.m. before any coffee, didn't even need to post a bunch of formulas to "impress" you), and as I said, Gold will most likely hit $2,000/ounce this year. 100x times increase from $20 to $2,000 is 10,000%. Good try to spin reality using false data and GIGO methodology though.
Read more: http://www.investopedia.com/university/inflation/inflation1.asp#ixzz1mUIbJgdtInflation is defined as a sustained increase in the general level of prices for goods and services. It is measured as an annual percentage increase
did you even read his response to your original post? Christ...Originally Posted by Jagged_Steel
All of the inflation occured from 1932 to the present.In 1932 the Dollar was redeemable for 1/20 ounce of Gold, i.e 1 ounce = $20. It was in 1933 that the Dollar was de-coupled from Gold. At the current Gold value of $1,735 it is "only" about 8,500% percent inflation ( I did that in my head @ 6 a.m. before any coffee, didn't even need to post a bunch of formulas to "impress" you), and as I said, Gold will most likely hit $2,000/ounce this year. 100x times increase from $20 to $2,000 is 10,000%. Good try to spin reality using false data and GIGO methodology though.