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50-Year Look at the Dollar’s Purchasing Power vs. Gold
To understand the impact of inflation on the US dollar, it’s helpful to compare its purchasing power to gold over time. Fifty years ago, the dollar’s value was quite substantial, but over time artificially low interest rates and money printing by the Fed have helped erode the greenback’s potency. In contrast, gold’s unique ability to preserve wealth and purchasing power is easy to see when compared to the dollar over the same time period. The following infographic shows the difference between two different savings scenarios: An American stores $3,500 in a safety deposit box in 1967 and takes it out in 2017. An American stores $3,500 worth of gold (100 oz) in a safety deposit box in 1967 and takes it out in 2017. If each person then went on a spending spree, here’s what could they buy.
What were your original reasons for acquiring gold & silver? pan-pac-50-round-details-lg-01If you are like us, it was because of the weakening financial condition in America, and your knowledge of history. What happens when a government spends as if there is no tomorrow, with no concern for the future? What happens when the printing presses of any nation crank out worthless paper fiat currency around the clock? What happens when those nations, who purchase America’s bonds, one day wake up and say, “no more!”? There is an old adage that says, “He spends like a drunken sailor.” Well, even a sailor stops spending when he runs out of money – but this government does not. The end of the modern Roman Empire draws near…
www.kettlemorainepreciousmetals.com
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