Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

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

  by    0   0

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

 

 

Get Peter Schiff’s latest gold market analysis – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!


Related Posts

CPI Housing Cost Calculation Hides True Extent of Inflation

The government CPI data for August came in slightly under expectations. Nevertheless, a 0.3% month-on-month increase in prices is significant. And a dig into the numbers reveals something wonky. The way the government calculates housing costs drastically understates rising prices and skews overall CPI to the downside.

READ MORE →

Gold’s Growing Role in Healthcare

A couple of years ago, CNBC commentator Jim Leventhal made a pretty astounding comment. When asked about gold, Leventhal said he had no interest in it because gold has no uses as a metal. Of course, this is nonsense. Gold has a wide range of uses in sectors ranging from jewelry to high-tech electronics. And […]

READ MORE →

Federal Budget Deficit Continues Its Relentless Upward Spiral

The US government ran a $170.64 billion budget deficit in August, pushing the total fiscal 2021 budget shortfall to $2.71 trillion with one month to go, according to the latest Monthly Treasury Statement. The mainstream media spun this as good news, noting that the August deficit was 15% lower than the $200 billion spending gap […]

READ MORE →

Incentives Matter: Unemployment Edition

Both Janet Yellen and Joe Biden insisted “enhanced” unemployment benefits weren’t incentivizing people not to work. The numbers prove them wrong.

READ MORE →

Producer Prices Surge Again in August

Producer prices came in hot again in August, charting the bigger annual gain in nearly 11 years. This indicates “transitory” inflation isn’t going away any time soon. The PPI for August rose 0.7% month-on-month. Economists were forecasting a 0.6% rise. This follows on the heels of two straight months with producer prices increasing 1.0%.

READ MORE →

Comments are closed.

Call Now