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50-Year Look at the Dollar’s Purchasing Power vs. Gold

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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.

buying-power-of-gold-v-USD-schiffgold infographic

 

 

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