U.S. Dollar Value VS Gold

You and your family are going broke right now and you don’t even know it. When the gold standard was set in place, the price of gold remained a constant $20.65 per ounce. And this price fluctuated only one penny over the years 1833 to 1890. That means that for 57 years the U.S. dollar was literally ‘as good as gold’. And that’s what the United States currency was designed to be from the very beginning. The Constitution states that our currency was meant to be only gold and silver to prevent exactly what’s happening to the u.S. dollar right now. From the years 1891 to 1930, the price of gold per ounce was still very stable. The low was $20.58 per ounce, and the high was $21.32. And this means that between the years of 1833 and 1930, for a total of 97 years, the price of gold changed in U.S. dollars only $.74 from top to bottom.

Since the Feds creation, we’ve been slowly going off the gold standard. Until finally on August 15, 1971, President Nixon, one of the worst Presidents in our Country’s short history, announced the United States would no longer redeem U.S. currency for gold. And this was the final step in abandoning the gold standard. What is important is to visually see the devaluation of the U.S. dollar since we were taken off the gold standard. Keep in mind, the price of gold really doesn’t go up or move, it has historical value. It is extremely consistent. So instead of seeing this as the price of gold going up, you need to see this as the value of the dollar dropping like a rock.

…if you wanted to buy a brand new Corvette convertible in 2008 it would cost roughly $55,000. So in gold, that’d be roughly 60 ounces of gold, at the spot price of $930 per ounce. So the time when gold was $930 you could basically take 60 one ounce gold coins, cash them in, and buy that very same car. Inversely, if you remove inflation and the devaluation of the dollar, as if the U.S. currency were still attached to the gold standard as it was originally intended when this country was founded, that same car being bought with the same 60 ounces of gold would have a gold standard value of only $1,200. Or the same 60, $20 one ounce double eagles.

Back in 1964 and earlier, a quarter would buy you roughly a gallon of gas. This is because the quarters made in 1964 and earlier were made of 90% silver and 10% copper. So the spot price of silver being $17.20 an ounce, this makes that quarters actual value $3.11. So you can see that same 1964 quarter will still buy you roughly a gallon of gas today. And in case you were wondering, it takes about 5 1/2 silver quarters to make up a full ounce of silver.

This is a fact. The price of gold may fluctuate with the value of the dollar. This doesn’t change the fact that precious metals, such as gold and silver, have maintained their value throughout time. And the only thing that changes is the value of the currencies that are not ties to gold and silver. This is what the founding fathers warned us about and tried to prevent from happening with the Constitution.

What people need to understand is the excess printing of the United States currency is just another tax on the American people. It takes the value of the dollars that they have and makes them worth less in the long run. Meanwhile you’re still making roughly the same amount of money. Yet, the prices of everything, from gas to milk, are going up constantly when in fact nothing is really going up in price, it’s the dollar’s actual value that’s been dropping, and not prices going up.