What Could You Buy With $100 Worth of Silver or Gold if You Invested 40 Years Ago?

As the purchasing power of the U.S. dollar decreases by the year, investors are turning to precious metals. The public has not yet figured out that the dollar’s devaluation is ongoing and that holding physical precious metals rather than cash is an effective way of protecting their purchasing power over time. Grasping the concept of dollar devaluation is difficult for many. One of the most effective methods used to illuminate this concept is through illustrations. We at Money Metals Exchange decided to use a $100 gold/silver investment from 1971 and convert the value into its worth today.


Presented by: Money Metals Exchange

4
Leave a Reply

avatar
  Subscribe  
Notify of
Buckhed
Buckhed

I’ve used this analogy with 4 silver quaters and a dollar bill in relation to a gallon of gas.When you do this for someone who doesn’t understand inflation it’s like watching a light coming on and the person says shortly……I’ve been robbed.

SSS

Good one, Buckhed. Gold and silver have never been worth nothing, any time, any place. Check out the decline of the Roman Empire, when silver coinage went from almost pure to 10%. There’s a huge lesson there.

Buckhed
Buckhed

SSS…I may have written of the analogy that I use with folks on inflation on here before but I’ll write just in case. I tell folks to pretend that the scenario below is real .

I take 4 silver quarters and a 1 dollar Federal Reserve note and place them on a table . I tell the person that the 4 silver quarters and the 1dollar Federal Reserve note were given to me in 1965 by my grandfather . He presented them to me in a shoe box and told me to place the shoe box in the hall closet at my moms house. He told me not open the shoe box again until 2014 .

I tell the person that in 1965 when I was given the shoe box it could buy 4 gallons of gas with the 4 silver quarters and I could buy 4 gallons of gas with the 1 dollar Federal Reserve note.

I tell them I opened the open the box in 2014 . I point to the 1 dollar Federal Reserve note, I tell them that the note will now buy me 1/3 of a gallon of gas.

I point to the 4 silver quarters, I tell them that the 4 quarters contain almost an ounce of silver. That silver is $17.45 per ounce . For the sake of argument I sell the 4 quarters to a metals dealer who gives me the full spot price for the coins. I can then take that $17.45 and buy almost 6 gallons of gas. They look at me and go “the silver never lost it’s buying power “….BINGO ! They get it .

Brad

Central banks have leased beucoup gold to the bullion banks who’ve sold it into the market. Unfortunately, that gold has been recast in kilogram bars with .9999 fineness and shipped to china never to be seen again.

That’s the problem the bullion banks have and why they keep on screaming about sub-$1000 gold.

They’re all about to have a “religious experience” as the LBMA and Comex default in unison and the price of gold gets disorderly on the upside.

Discover more from The Burning Platform

Subscribe now to keep reading and get access to the full archive.

Continue reading