When the gold standard was set in place, the price of gold
remained a constant $20.65 per ounce and only fluctuated by
$0.01 from the year 1833 to1890. So for fifty seven years
as the US Dollar was attached to this gold standard, it
remained un-fluctuating along with the gold standard. That
is how it was designed to be from the founding of the
country.
The constitution states that the currency of the country is
to remain that way to maintain the Dollar and protect
against what is exactly happening to the currency today.
From the years between 1891 and 1930, the price of gold per
ounce remained relatively stable. The lowest it went was
$20.58 and the highest it reached per ounce was $21.32 and
so, for a total of ninety seven years between 1833 and
1930, the price of gold only moved $.74 cents from high to
low.
The price of gold hit an all time low during the depression
year of 1931 since then the US slowly removed the Dollar
from the gold standard until August 15th 1971; President
Nixon announced that the US government would no longer
redeem US currency for gold. This was the last step in
departing from the gold standard. The demise of the Dollar
can be seen since it was removed for the gold standard.
Keep in mind that the Dollar has historical value and
therefore is extremely consistent, even though it looks as
though the gold price is rising; it is actually the Dollar
that is dropping. It has been as high as $1,030 per ounce,
down to $830 per ounce.
So interestingly, if you wanted to buy a new car that cost
$55,000 in 2008 and in gold, that would cost you roughly 60
ounces of gold at the spot price of $930 per ounce. So, if
the Dollar was never removed from the gold standard and all
the inflation that has occurred because of the removal from
the gold standard, that same car today would only cost you
$1,200. Remove the $1,200 from $55,000 and you get $53,800
which is how much inflation this $1,200 item has risen by
over the last one hundred years.
The original Dollar value is roughly $.02 cents in today's
money. It's astounding to realise how much the Dollar has
dropped in value. I will try to explain further. In 1964,
$.25 would buy you roughly a gallon of gas because a
quarter in 1964 were made from 90% silver and 10% copper.
Silver costing $17.20 per ounce makes the quarters value
$3.11 so that same quarter from 1964 could still buy you a
gallon of gas today. This shows that the value of gold and
silver has hardly changed and that it's the currencies that
are not tied to gold and silver that are fluctuating
drastically.
This was the warning of the founding fathers and why they
tied the Dollar to the gold and silver standard at the
founding of the constitution. The excess printing of money
by the Federal Reserve is just another tax on the American
people, it takes the value of the Dollar that you have in
your pocket and makes them worth less and less in the long
run. While you are making roughly the same amount of money,
the price of goods and services are going up but really,
it's the value of the Dollar or any currency really, that's
value is going down. I hope that I have made it clear to
you that you need to make a move on this problem, be it
investing your money as soon as you can into precious
metals or by even taking a stand against the governments
position on a detached Dollar from the gold standard.
----------------------------------------------------
There is a lot of food for thought with this article and
knowing this information can change your whole way of think
towards the Dollar in your pocket. To know more about
investing in gold, go to my web site at:
http://www.wheretobuy-gold.com and check out my other
article at: http://howtobuy-gold.blogspot.com/
Thank you for th etime you took to read this article.
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