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keys
Penny Collector Member
383 Posts |
 Posted - 04/17/2009 : 23:56:41
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Pure Silver Coins – A Warning Sign from 1965
In 1965 I was 10 years old. I lived with my parents and 3 sisters in a small house in the suburbs of Detroit. My mother stayed at home and my father was a sales engineer for the Olin Corporation. The Olin Corporation was a leading manufacturer of brass, copper, aluminum sheet and strip. Olin had just given their employees a memento to celebrate a big contract win received from the U. S. Mint. The memento was a new 1965 quarter; it had a thick core of Olin copper sheet sandwiched in between two very thin pieces of silver.
............(Actually it was cupronickel, not silver)
1965 was the first time that United States dimes, quarters, and fifty cent pieces were debased from their almost pure silver by the addition of the thick copper sheet*. Unlike his employer, my father was not celebrating. Because my father knew economics and history he was disgusted and frustrated by the economic and moral weakness of his country that led to its debasing of its currency. My father told us that ancient Rome had similarly debased its coins as its empire began its downhill slide. I was too young to comprehend what my Father was talking about.
Today our U. S. coins continue to be debased and our paper money is also debased since its government backing of gold was removed in twin pronged steps carried out in 1933 and 1971. Today pre-1965 U. S. silver coins sell for 11 times face value. This factor of 11 times is a good indicator of the amount of true currency devaluation we have experienced since 1965.
I expect this currency devaluation to continue.
*Pre-1965 silver coins are actually 90% silver, alloying was added to reduce wear and increase stiffness.
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So lets consider this for a moment-
The price of a US Silver Coin goes up 11 times its face,
so, per the theory, the Dollar goes down 11 times its face value from its buying power of 1965.
What item or items did one US Dollar buy back in 1965?
(I'm asking, I don't know for sure.)
Theoretically-
If one US Dollar bought 10 loaves of bread in 1965 then it would take 11 US Dollars to buy 10 loaves of bread today.
Around my way, unless I shop at a discount bread store, I do not see bread selling for just $1.10, it sells for a higher price.
At least the idea 11 times face of silver coins equals 11 times what the prices of goods were from 1965 compared to today is a fair idea of what inflation is doing to our money.
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I change with the times-
but like silver coins found in your change
I stay the same.
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The United States of America started out as the new Republic of Rome.
Will The United States of America end up as the New Imperial Rome? |
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fb101
Administrator
USA
2856 Posts |
Posted - 04/18/2009 : 07:06:31
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Hershey bars were 10 cents.
Bread could be had on sale at 20 cents.
mcdonalds hamburgers were a dime.
volkswagens were $900
(If I remember correctly) |
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Delawhere Jack
1000+ Penny Miser Member
USA
1680 Posts |
Posted - 04/18/2009 : 07:23:45
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| About 4 gallons of gas. |
"Educate and inform the whole mass of the people... They are the only sure reliance for the preservation of our liberty." Thomas Jefferson
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horgad
1000+ Penny Miser Member
USA
1641 Posts |
Posted - 04/18/2009 : 16:17:49
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In 1965 a stamp cost a nickel. Today they are 42 cents and going up again soon as the post office is losing money like crazy. So that is a 8.4X gain.
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Edited by - horgad on 04/18/2009 16:18:40 |
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Copper Catcher
Administrator
USA
2092 Posts |
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NotABigDeal
1000+ Penny Miser Member
USA
3890 Posts |
Posted - 04/18/2009 : 20:38:03
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Nice link Copper Catcher. Thanks.
Deal
p.s. Wasn't alive in '65, hehe. |
Live free or die.
Plain and simple.
"If you love wealth more than liberty, the tranquility of servitude better than the animating contest of freedom, depart from us in peace. We ask not your council or your arms. Crouch down and lick the hand that feeds you. May your chains rest lightly upon you and may posterity forget that you were our countrymen."
- Samuel Adams |
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Mike
Penny Sorter Member
USA
65 Posts |
Posted - 04/18/2009 : 21:15:08
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I'm 52 years old, and have no trouble remembering when first class postage was 4 cents, a paperback book was 65 cents, and a gallon of gasoline was 27 cents.
Over the past 45 years, the Dollar has lost 90% of its value. I have no doubt that over time it was lose another 90% of its value. The only question in my minds is,
...will it take another 45 years,
...or another 45 months,
...or another 45 weeks? |
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redneck
1000+ Penny Miser Member
1273 Posts |
Posted - 04/18/2009 : 23:25:17
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quote:
Copper Catcher Posted - 04/18/2009 : 20:31:39 This is a link showing the price of goods in 1965:
You must be logged in to see this link.
What I found interesting was in;
In 1950's a new house cost $10,400 average
Income average $4,110
A ratio of 2.53
(from another site) You must be logged in to see this link.
From
You must be logged in to see this link.
In 1960's a new house cost $24,600 average
Income average $7,143
A ratio of 3.44
In 1970's a new house cost $49,200 average
Income average $12,597
A ratio of 3.90
In 1980's a new house cost $112,600 average
Income average $23,308
A ratio of 4.83
In 1990's a new house cost $172,800 average
Income average $34,958
A ratio of 4.94
So essentially the difference between 1950 and 2000 is that you now have to earn twice as much to get the same purchasing power when buying a home.The ratio is even worse when you compare other things like cars, food and clothing etc.
This is why it takes two people working compared to the single wage earner of the 50's & 60's to make ends meet.(when the divorce rate was low, people had ethics and people still saw their chance at the American dream)
Nice huh...
Remember,you also have two people paying taxes now.(funny how that seems to help the government grow only and not us)
What do you think this decade will be 2000-2009 ?
Stagnant wages,credit expansion,rising real estate prices,lost jobs,credit contraction,sinking real estate and devaluing the last 1% of our purchasing power by running the printing presses night and day .
Did I miss anything...?
If I did, I don't care...
I'm going to bed...
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HoardCopperByTheTon
Administrator
USA
6807 Posts |
Posted - 04/19/2009 : 04:01:20
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It is almost enough to depress a guy. But you know what? There is a copper lining.. a dollar still buys 100 pennies! That's 2 Full rolls! Sure, not all of them will be copper, but depending on where you live somewhere between 15 and 30 percent of them will be copper. Seems those pennies have held their value pretty well compared to the other stuff.  |
If your percentages are low.. just sort more. If your percentages are high.. just sort more.
Now selling Copper pennies. 1.6x plus shipping. Limited amounts available. |
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US Dollar devaluation from another perspective
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