You see, if you were to consider Lucy’s proposal as a weekly rate (after all, the lives of children revolve more around the week than the month) and adjust for inflation back to the time of the old gold standard, the proposition that, “insurance should be a nickel,” makes perfect sense. The original 1 oz. “Double Eagle” gold coin was worth 20 dollars. Therefore, 1 dollar was approximately equal to 1/20th of an ounce of gold and a nickel’s worth would be 1/400 of an ounce of gold.
When the commercial was written, I believe the price of gold was around $1,290 per ounce. Hence, an old nickel’s worth of gold would be worth almost $3.25 at the time.
Considering Lucy’s price as a weekly rate, if we took the more precisely adjusted price of $3.25 and multiplied it by 52 weeks per year, customers would be paying around $169 per year for insurance. If you took MetLife price of $14 per month, the annual cost would be $168 per year.
While we do not know the exact price of gold when the commercial was written it would seem that Lucy’s weekly price adjusted to the old gold standard is approximately the same as MetLife’s monthly price.