Gold vs. Dollar

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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 US dollar was literally as good as gold, and that's how the United States currency was designed to be from the very beginning. The Constitution states that currency was only meant to be gold and silver to prevent exactly what is happening to the US dollar right now.

From the years 1891 to 1930 the price of gold was still very stable, the low was $20.58 per ounce and the high was $21.32. This means that between the years 1833 to 1930 total of 97 years the price of gold changed in US dollars only $.74 from top to bottom. Interestingly enough the price of gold hit an all-time low during the depression year of 1931 and many people believe this was done on purpose by the newly formed Federal reserve to really twist the knife in the economy of the day. By reducing the total amount of money in circulation and thus making even the smallest amount of money very tough to come by. The common mistake by some people to think that the great depression is why the Federal reserve was created, the truth is the Federal reserve was in fact created in 1913 and this was well before the great depression.

Since the Fed's creation we've been slowly going off the gold standard until finally on August 15, 1971 Pres Nixon, one of the worst presidents in our country short history announced the United States would no longer redeem US currency for gold. And this was the final step in abandoning the gold standard, but what is important is to be able to visually see the devaluation of the US 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 is going up, you need to see this as the value of the dollar dropping like a rock. The price of gold has been flying right now, and it has recently been priced at $1030 per ounce all the way down to $870 an ounce. What I find most interesting is if you want to buy a brand-new Corvette convertible in 2008 it would cost you roughly $55,000. So in gold it would be roughly 60 ounces of gold as a stock price of $930 per ounce. So a 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 US currency was 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 $1200. Or the same 60, one ounce twenty dollar double eagles. So if that car price today is $55,000 and the gold standard value is $1200 it means that we are sitting on roughly $53,800 inflation over the last hundred years for a $1200 item.

This brings the original dollar value to roughly 2 cents in today's money. Sure this is pretty tough to imagine and some people can't handle this concept and will try and blow it off as incorrect. The fact is that this is what is really going on with our currency if you don't believe me try this one. 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 stock price of silver being $17.20 an ounce it makes an actual quarters value $3.11. So you can see that that same 1964 quarter, will still buy you roughly a gallon of gas today. In case you were wondering it takes about 5 120 silver dollars to make up a full ounce of silver. This is the fact the price of gold may fluctuate with the value of the dollar but it doesn't change the fact that precious metals such as gold and silver have maintained their value throughout time. The only thing that changes is the value of the currencies that are not tied 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 currency is just another tax on the US people. It takes the value of the dollars that they have a makes them worth less in the long run. Meanwhile you're still making roughly the same amount of money, yet the prices for everything from gas to milk are going up constantly. When in fact nothing is really going up in price is the dollars actual value that is dropping and not prices going up. I can't emphasise this enough. I didn’t add the advert bit about sharing the video as it was not related to the topic.