What is our money really worth???
How much is our money really worth? If you think about it, all 90% silver
dimes, quarters, and half dollars minted through 1964 are currently
worth 29 times their face value due to the current price of an ounce of
silver being $40 per ounce. So, in reference, our money is currently
worth about 29 times less today than it was in 1964. So, do you think
our economy is getting better???
-True Money!
Views: 37
Replies to This Discussion
-
Permalink Reply by Bruce Wiseley on -
The key words in your question are; "The current price of an ounce of Silver". Therefore, the question isn't answerable at this time, because even the alleged experts have no idea how long or how much of this increase is real or inflated, similar to the 1980 increase. Although I don't think it's a fake increase, as the Hunt Brothers are dead, when or where it will top out is pure speculation. For the people who bought PM's when the prices were lower, they are in a great position, but how long will the rush take place is for people much smarter than I. As a greedy person, I just cashed in some bullion, and bought a swimming pool. So my bullion was worth more than my paper money, mostly because I didn't have enough paper to pay for the pool. My magic number was $40 an ounce. Now, if it goes to $50, maybe a new car, lol. This is a great question, and I'm looking forward to reading what our experts on this site will have to say about it.
-
Permalink Reply by Buffalo on -
If you go by the government's CPI inflation calculator, they say $1.00 in 1964 had the same buying power as $7.14 currently. Personally, I think the CPI numbers don't accurately reflect people's actual spending, so I think the "real" inflation that all of us have to deal with has been considerably higher. Like most other economic measurements these days, the results seem to depend as much or more on how it is measured and reported than the underlying data. I don't know that you can really determine inflation in terms of increases in metal value for precious metal coins though. The goal was always to keep the metal value below the face value, so a particular coin's value was established as a face value and not really a function of the metal content. Increases in gold or silver can vary a lot and both can be different than many other things we have to spend money on.
As far as the economy getting better, probably better than last year. But overall unemployment, increases in the number of Americans living below the poverty level (now more than 14%), an average loss of 23% in household net worth between 2007-2009, roughly 13% of American homes sitting vacant right now, huge debt and deficits, etc makes it hard for me to see much economically that is better than in 1964.
Bruce, I think what happened with silver due to the Hunt Brothers is really immaterial to what has happened with it now. I have been surprised that silver has gone up so much, so quickly, and so steadily but I don't see anything that indicates a bubble to me. So I think it will continue higher, we will eventually see that $50 price and maybe quite a bit more, and personally I think more and more there is some truth to the claims of "hidden" shortages and claims that defaults are coming due to so-called "physical" silver not really existing.
-
Permalink Reply by True Money on -
I have been saying this over and over and over again on here. Simply printing money is not the solution to the problem. Quantitative Easing only masked the problem for a while and, just as I have stated before, is only going to create more of a problem for our nation. Look at how things are shaping up right now. Isn't it eerily similar to what happened in 2008? This country has essentially hit a breaking point. I have said that this looming depression will greatly dwarf the Great Depression. On what basis can our country stand at this point and really truthfully say that this is the greatest country in the world? We consume and waste more than any other country without really producing anything. Our government suppresses those of us who do the work with low-paying jobs while rewarding those non-working lazy indigents on welfare and medicaide with a penalty known as taxes. Why? We live in a world where Major League Baseball teams sign top draft picks with multi-million dollar bonuses before ever playing an out in professional baseball. Get a grip! How do these people contribute anything to our economy? What happened to rewarding the people who perform? This is what our country was built on. Unfortunately, our country is composed of about 95% to 99% of a population of people who don't have any idea of what it is to contribute to the economy. Before you go and say doctors have a purpose, think about this. Doctors who do their jobs are one in a million and are not rich. All of these rich doctors you see get there by performing favors for pharmaceutical companies through prescribing medications that are simply unnecessary 90% of the time. This, along with the medical problems further attributed to these unnecessary medications leads to our outrageous health insurance premiums that continue to escalate year-after-year! Now think about this. All of these indigents who act as parasites get infinitely better health care than those of us who pay these high premiums, except they don't pay one cent. We pay our insurance and have to pay for theirs and hospitals and doctors feast off our tax dollars to help that indigent out much better than us who pay for the health care. Do you think this is fair? HELL NO!!!!!!!
This should reveal a little better picture about what is really happening out there and why our economy is in shambles. This is why I collect bullion in the form of silver, gold, platinum, and now copper. Those of us who see and know what is happening are preparing ourselves for a real nightmare. Are you ready?
This is why I go by the name True Money on here.
-True Money!
-
Permalink Reply by True Money on
-
A gallon of gas in 1964 was 24 cents. How does this compare to today's prices of $3.60 to $4.00 per gallon for a lesser grade of gas? This means that the purchasing power for a lesser grade of gasoline today is 15 to 17 times higher than it was in 1964. Actually, when you account for the exact same quality of gas, the buying power of the dollar in 1964 would equate to about $20 currently.
-True Money!
Buffalo said:If you go by the government's CPI inflation calculator, they say $1.00 in 1964 had the same buying power as $7.14 currently. Personally, I think the CPI numbers don't accurately reflect people's actual spending, so I think the "real" inflation that all of us have to deal with has been considerably higher. Like most other economic measurements these days, the results seem to depend as much or more on how it is measured and reported than the underlying data. I don't know that you can really determine inflation in terms of increases in metal value for precious metal coins though. The goal was always to keep the metal value below the face value, so a particular coin's value was established as a face value and not really a function of the metal content. Increases in gold or silver can vary a lot and both can be different than many other things we have to spend money on.
As far as the economy getting better, probably better than last year. But overall unemployment, increases in the number of Americans living below the poverty level (now more than 14%), an average loss of 23% in household net worth between 2007-2009, roughly 13% of American homes sitting vacant right now, huge debt and deficits, etc makes it hard for me to see much economically that is better than in 1964.
Bruce, I think what happened with silver due to the Hunt Brothers is really immaterial to what has happened with it now. I have been surprised that silver has gone up so much, so quickly, and so steadily but I don't see anything that indicates a bubble to me. So I think it will continue higher, we will eventually see that $50 price and maybe quite a bit more, and personally I think more and more there is some truth to the claims of "hidden" shortages and claims that defaults are coming due to so-called "physical" silver not really existing.
-
Permalink Reply by Indentured Servant on -
TM,
The coming worldwide toilet bowl flush is absolutely necessary to clean out the freeloaders. The most current crop of freeloaders, while irritating, are really not to blame. Welfare has been handed out for so long and so freely that freeloading is a multi-generational thing. Most of them really don't know any different. I'm not excusing it but just looking at the reality of it. The millions who have recently found themselves forced to accept unemployment would prefer to work but that is likely impossible for a few more years yet.
Then you have those of us who live below our means, save for retirement, and pay their way through the world. It is absolutely unfair that we should have to suffer alongside the freeloaders but that is the price we pay for allowing them to freeload.
Luckily, those of us who pay our way through this world will also be the ones who prepare for the new future. I doubt that I'll ever feel fully prepared but I've given up being pissed off or outraged about. I'd rather pay for the excesses of my generation myself than pass that burden on to someone else. That would make them an Indentured Servant just like I have been to my parents generation. (not that I did not derive great benefit from those excesses)
I truly believe that the long term future will be fantastic but the next decade is going to be very difficult indeed. Buy and hold PM's, learn to grow a garden, form strong bonds with your family, friends and neighbors, become less reliable on the system and you will come out ahead on the other side.
Bill
-
Permalink Reply by Bruce Wiseley on
-
That's good advice in any situation, Bill. I have 2 retirements (Military and SS), and I still have a part-time job, working 16 hours a week, just to afford the extras. Plus I have a 14 year old daughter, who spends money like it's 1995, lol! Oh well, my life choices, so no complaints here. I did invent a term that I think best describes the individuals you were speaking of- I call them the MOOCH-A-MEALS. And they know no other way of life. They always have their hands out, asking for everything, and complaining that's it's never enough. Oh well. My garden goes in soon!
© 2012 Created by coinnetwork.
