President Trump has created a savings account for small children, to teach them to save, and so far over six million have signed up. Each child’s account will have $1,000 in it. That’s $6 billion, and as usual, it will be paid by government, and you in the form of ever decreased dollar value.
I was born in 1934, and if I were awarded $1,000 by FDR, let’s see what I could have bought. How about 25 gold Double Eagles and 25 Silver Dollars? That would be $1,000.
In 1934, the U.S. Mint only made 1,011,000 silver dollars, and assuming they had never been used, but would be like brand new or MS 60, each one would be worth $32,500. This is not a coin store mark up, but what they would be worth on a wholesale basis. Today 25 would be worth $812,500.
25 Double Eagles. A gold ‘Eagle,’ was a $10 gold coin, and a ‘Double Eagle’ was twice the size of a single Gold Eagle. There were none made In 1934, as FDR had issued an ‘executive order’ telling everyone to turn in their gold, for a paper $20 bill, if you can imagine such a thing. Millions kept their gold! After he collected a lot of gold he raised the gold price from $20.67 which it had been for a hundred years, to $35 an ounce, thereby stealing millions from the morons who turned in their gold. I’ll go back a couple of years to 1931, and in that year, 3,044,750 gold Double Eagles were made, and today, each one would be worth $55,000 X 25 = $1,375,000. $1,000 worth of gold and silver, 92 years later, would be worth $2,190,500. Not bad for a $1,000 input.
Assuming that the initial thousand dollars remained in a bank savings account, today, at 2% compound interest added since 1934 that savings account would have $2653.38 in it. As is shown above, if that $1000 had been used to buy then commonly used gold and silver items at 1934 prices, and kept, it would now be worth $2,190,500 in the same paper dollars as were used in 1934.
If that isn’t fair, let’s go back to when I started dealing in precious metals, which was 1975. In 1975, $1,000 would have bought a thousand ounces of silver at a dollar an ounce, and today, as I write this, even at today’s super low prices, the 1,000 ounces of silver bought at a dollar an ounce in 1975, would be worth $56,320. How do I know? I was selling silver at a dollar an ounce then!
From 1975 to today, $1,000 at 2% compounded interest your savings account would have $2,653.30 in paper dollars in it. Had you bought from me, in 1975, a thousand ounces of silver at a dollar an ounce and put it in your safe, with no interest, no reporting, no taxes, and being able to leave it to your kids with no inheritance taxes, it would be worth $56.320.
Could there ever be a better illustration of the beauty of saving your surplus assets in silver and gold, or the futility of saving in dollars? It’s fun to write these, as they are a perfect illustration of LOGIC. Save in dollars? Stupid. Save in metals? Logical.
Will metals prices go lower? I haven’t the foggiest, but since the budget is never balanced, and the Fed keeps pouring dollars into the system, are there any prices which will not go up? As a kid, I used to buy Quaker State motor oil for 50 cents a quart.
An alarm system is imperative to have in your home or business. Just to say ‘hello,’ I called David “L” yesterday, and I hadn’t talked to him for a long time. Dave has a coin shop 20 miles from me, and he specializes in numismatics with which I never deal. It is sad what has happened to him and his store. It has been broken into twice, and tens of thousands of dollars have been stolen, plus damage to his store, which building he owns. He never bought an alarm system! It’s taken him financially down, and he is trying to get rid of his stock so he can sell his 8,000 square foot building. Dave will be OK, since he’s 9 years younger than me and is debt free, but I mention this because of Dave, who I would never believe operated a gold and silver business without one. Everyone needs one, and with a camera!
Every homeowner and business person needs guns and several of them distributed in various places. Always shoot to kill, not wound. I’ve never had to shoot anyone, but if needed, I’m certain I would. I may be ‘preaching to the choir,’ but Dave “L”’s situation shocked me, so I pass it on.
The United States currently has population of 348 million, and has a $39.5 trillion debt, or about $118,000 per person. The Federal Government, so far as spent $5.5 trillion, and collected $4.1 trillion, making a deficit of $1.4 trillion, which is the amount which has been added to the currency supply, either dollars bills, or computer entries, but the bills must be paid, and we never voted for the spending! The dictionary definition of inflation (prices going up) is, “An increase in the currency supply.”
-Don Stott don@coloradogold.com