04 May 2007

...but how many Big Macs will it buy?

There was a conversation about investment at work that mentioned stocks, gold and the "Big Mac Index" so I decided to do a quick analysis.

Year Big Mac DJIABig Macs per DJIA $/oz Gold Big Macs per oz Gold
2001 $2.54 10790 4248271 106
2002 $2.49 102594120 278 111
2003 $2.658601 3245 343 129
2004$2.90 10409 3589 417 143
2005 $3.15 10827 3437 428135
2006 $3.15 108833454 530 168
2007 $3.2212474 3873 640 198

It didn't quite work out the way I had expected it to. Plotting the CPI (or the Euro) against these numbers might also be interesting.