Allow me to repeat it. “The more of anything there is, the less they will be worth, and the less of anything there is, the more they will be worth.” This applies to everything, be it carrots, wallpaper, lumber, auto parts, bricks, water in the desert, or water anywhere. Snow, sunshine, trees, and you name it. Oh I forgot. Dollars as well, and the more dollars there are, the less they will buy. Fair? Here’s some statistics:
Billions of dollars in circulation
1997 – 458.2. 1998 – 497.2. 1999 – 601.2. 2000 – 563.9. 2001 – 617.3
2002 – 654.8. 2003 – 690.2. 2004 -19.9. 2005 – 758.8. 2006 – 783.5
2007 – 792.2. 2008 – 853.2. 2009 – 888.3. 2010 – 942.0. 2012 –
1034.5. 2013 – 1198.3. 2014 – 1299.1. 2015 – no figure available
2016 – 1463.4. 2017 – 1571.1. 2018 – 1671.9. 2019 – 1759.8.
2020 – 2040.7. 2021 – 2187.5. 2022 – 2259.3. 2023 – 2297.4.
2024 – 2322.9.
Below, are consumer prices for years beginning with 1913, which are officially known as, the “Consumer price index.”
1913 – 9.9. 1920 – 20.0. 1940 – 14.0. 1946 – 19.5. 1960 – 29.9.
1970 – 368. 1980 – 87.4. 1990 – 130.7. 2000 – 177.2.
2020 – 258.8. 2025 – 321.94.
I’d do other things like average car prices, but cars have kept improving so much, that their prices probably would appear as going up, as the now common things such as power everything, pollution controls, cruise control, air conditioning etc., cost labor and dollars to install, and we don’t want to do without them, so they add to their prices.
I have tried to get the prices of gold and silver over the years, but the best are our own technical charts, which you can see on our web site, but they only go back ten years. See for yourself. Click on, “Technical Charts.”
I was writing this at noon on Friday, and the phone rang. A client of mine bought gold and silver in 2014, and he wanted to know what they were worth now. I hadn’t heard from him since. I guess he never looks at our web site, and maybe doesn’t know where it is. He just spent some money with me in 2014, and probably forgot about it. Who knows? He was shocked that his Gold Eagles were $4,750 and his Silver Eagles were $77. He repeated those figures, and “You mean dollars?” Yup. He remembers my house on the corner, and said he’d probably be by here this summer. Not to sell, but to get a cup of coffee, like he got last time. Silly to repeat this kind of stuff, but it makes me feel good. Sorry.
At any rate, the above figures simply prove that the presses are still running, printing government paper money, which pays government’s bills, and this adds to the money supply, and everything keeps ‘going up.’ I saw a commercial for a dealer on Fox News the other day, and he said that “As the dollar’s value goes down, gold’s value goes up.” WRONG. Gold and silver’s value remains the same. Only their prices go up, in whatever monies you live and deal with, which are dollars here. Three silver dimes still buys a gallon of gas. and an ounce of gold still buys a Heart Schaffner and Marx suit. In 1991, 200 ounces of gold bought my home, and 200 ounces of gold would buy it now, if it were for sale, and it isn’t. Same house, and same gold, which may be up in dollars, but its value hasn’t gone up, because it’s real money all around the world, regardless of their deficits and the brand of their presses. Remember Chandler Price printing presses and Linotypes? I do!
Don Stott don@coloradogold.com