Comparing wages in gold rather than currency offers a different perspective on the long term value of money.
What if we measured a worker’s annual salary not in euros, francs or dollars, but in ounces of gold?
It is a simple comparison, yet one that raises an important question about the purchasing power of fiat currencies and the role gold can play as a long term store of value.
A widely circulated comparison suggests that the average French salary in 1970 was equivalent to approximately 85 ounces of gold, while a salary today buys around 9 ounces.
These figures should be treated as illustrative estimates until the underlying salary data and gold prices are verified on a consistent basis. Nevertheless, the comparison highlights an important way to think about money: the number printed on a payslip tells only part of the story.
The difference between earning money and preserving purchasing power
In 1970, France used the French franc. Today, it uses the euro. Over the intervening decades, wages, prices, taxes and living standards have all changed.
Official data from France’s national statistics agency, INSEE, shows that the average annual net salary for men in full time employment was recorded at €2,711 in 1970, using its retrospectively converted euro series. For 2024, INSEE reports an average annual net full time equivalent salary of €32,791 across private sector employees. These figures cover different populations, so they should not be compared directly without adjustments.
The broader lesson is that measuring income in currency and measuring it in gold answer different questions.
A salary measured in euros tells us how much money a worker receives. A salary measured in gold tells us how much of a finite physical commodity that income could purchase at a given price.
Why gold provides a different benchmark
Gold has been valued across civilisations for thousands of years. Unlike fiat currency, it cannot be created simply by changing a government policy or expanding a central bank’s balance sheet.
The supply of gold grows through mining, recycling and the release of existing stocks. Its market price fluctuates in response to interest rates, investor demand, central bank purchases, geopolitical uncertainty and other factors.
Fiat currencies, by contrast, operate within monetary systems where the supply of money and credit can expand substantially. When the general price level rises, each unit of currency buys less than before.
This is why some people use gold to assess the long term purchasing power of money. They are not simply asking whether the price of gold has risen. They are asking how the value of currency has changed relative to an asset with a limited supply.
What does the 85 ounce versus 9 ounce comparison tell us?
If the estimates of 85 ounces in 1970 and 9 ounces today were confirmed using comparable salary and gold price data, the difference would be substantial.
A worker earning the equivalent of 85 ounces would have an annual income measured in gold almost ten times that of a worker earning the equivalent of 9 ounces.
That would represent a decline of approximately 89% in the amount of gold represented by the annual salary.
However, this does not automatically mean that French workers are 89% worse off in terms of their overall living standards. Gold prices fluctuate, and living standards also depend on productivity, housing costs, public services, taxation, household circumstances and the prices of everyday goods.
The comparison is best understood as a measure of purchasing power relative to gold, not a complete measure of economic wellbeing.
The importance of thinking beyond currency
Modern financial discussions often focus on nominal wages, sharemarket indices, property prices and bank balances. These figures can rise substantially over time, but increases in nominal value do not necessarily translate into equivalent gains in purchasing power.
For savers, the important question is not simply how much money they accumulate. It is what that money will buy in the future.
Gold offers one way to examine that question over long periods. It has no guaranteed return, and its price can experience significant declines as well as rises. Nevertheless, its history as a monetary asset makes it a useful benchmark when examining the long term relationship between currency and tangible assets.
Why physical gold and silver remain part of the conversation
Gold and silver appeal to people who want to hold tangible assets outside the conventional banking and financial system. Physical bullion is different from owning a fund, a derivative or a claim linked to the price of a metal. It can be held directly, although ownership also involves considerations such as secure storage, insurance, premiums and resale costs.
Neither metal guarantees protection against every form of inflation or economic uncertainty. Their market prices can be volatile, and their performance over any particular period is uncertain.
The case for considering precious metals rests on diversification, their physical nature and their long history as stores of value, rather than a promise that prices will always rise.
The FirstGold perspective
At FirstGold, we believe it is worth looking beyond the number on a bank statement and considering what money represents in real terms.
The comparison between wages and gold provides a useful starting point for that discussion. Before drawing firm conclusions from the 85 ounce and 9 ounce estimates, however, the historical figures should be verified against consistent wage statistics and gold prices for the relevant periods.
The central question remains: are you measuring your wealth by how many dollars you have, or by what those dollars can ultimately buy?
Disclaimer: This article is for general information and educational purposes only. It does not constitute financial advice or a recommendation to buy or sell gold, silver or any other asset. Precious metals fluctuate in value, and past performance does not guarantee future results.
Sources and verification
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INSEE, historical average annual net salary series: https://www.insee.fr/en/statistiques/serie/001665149
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INSEE, average annual net full-time equivalent salary, private sector, 2024: https://www.insee.fr/en/statistiques/serie/010752333
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US Federal Reserve, historical gold-price data: https://www.federalreserve.gov/econres/notes/feds-notes/official-reserve-revaluations-the-international-experience-accessible-20250801.htm
