🐄 Cows, Beef, and the Gold Standard
When the U.S. left the gold standard in 1971, the dollar became fiat—backed only by confidence in the government and the Federal Reserve. To see the impact, look at something tangible and timeless: the price of beef and the cost of a cow.
In 1913, a cow cost about $8 — or 0.39 ounces of gold.
In 2025, a cow costs about $2,500 — or 0.66 ounces of gold.Measured in dollars, cows are ~300× more expensive.
Measured in gold, cows are nearly the same price.
Beef and Cows in Dollars vs. Gold
| Year | Price of Beef (per lb) | Price of Cow (per head) | Gold Price (per oz) | Cow in Gold (oz) |
|---|---|---|---|---|
| 1913 | $0.12 | $8 | $20.67 | 0.39 |
| 2025 | $5.50 | $2,500 | $3,760 | 0.66 |
What This Shows
- In fiat dollars: beef and cows appear drastically more expensive today.
- In gold terms: the cost has been remarkably stable—a cow in 2025 still costs roughly the same weight of gold as it did in 1913.
This highlights how the devaluation of the dollar, not the scarcity of cows or beef, explains the dramatic rise in food prices. Gold, unlike fiat money, has preserved purchasing power across generations.
Big picture: What looks like inflation in dollars often recedes when measured in gold. Beef is a clear example.