You and your family are going broke right now and you don't even know it. When the gold standard was set in place, the price of gold remained at constant $20.65 per ounce and this price fluctuated only one penny over the years 1833-1890. That means over 57 years the US dollar was literally as good as gold and that's what United States' currency was designed to be from the very beginning. The constitution states, that our currency was meant to be only gold and silver to prevent exactly what's happening to the US dollar right now.
From the years 1891-1930 the price of gold per ounce was still very stable. The low was $20.58 per ounce and the high was $21.32. And this means that between the years of 1833-1930 for a total of 97 years, the price of gold changed in US dollars only $0.74 from top to bottom. Interestingly enough, the prices of gold in all time low, during the depression year of 1931 and many people believed this is done on purpose by the newly formed Federal Reserve to really twist the economy of today.
By reducing the total amount of money in circulation and thus making even a smallest amount of money very tough to come by. There is a common mistake by some people to think that the great depression is by the Federal Reserve, has created. The truth is that Federal Reserve was in fact created in 1913 and this is well before the great depression. Since the Feds creation we have been slowly going off the gold standard until finally on August 15, 1971 President Nixon won the worst presidents in our country short history announced that United States will no longer redeem US currency for gold. And this is the final step in abandoning the gold standard.
What is important is to visually see, the devaluation of the US dollar since we are taken off the gold standard. Keep in mind, the price of gold, really doesn't go up or move, it has a historical value, it is extremely consistent. So instead of seeing this as the price of gold going up, you can also see this is the value of the dollar chopping like a rock. The price of gold has been flying right now. It has recently been as high as the $1003 in ounce all the way down to $870 an ounce.
And what I find most interesting is you want to buy a brand new Corvette Convertible in 2008, it would cost roughly $55,000. So, in gold that would be roughly 60 ounces of gold at the spot price of $930 per ounce. So the time when gold is $930, you could basely take 60, one ounce gold coins, cash them in and buy that very same car. Inversely, if you remove inflation and a devaluation of the dollar, is that the US currency was still attached to the gold standard it was originally intended when this country has founded. That same car being bought with the same 60 ounces of gold, will have a gold standard value of only $1,200 or the same 60, $20, one ounce double eagles.
So that car priced today is $55,000 and the gold standard value is $1,200. This means it was sitting on roughly $53,800 inflation of the last 100 years for $1,200 item. This brings the original dollar value to roughly two cents of today's money. I am sure that it's pretty tough to imagine and some people can't handle this concept and they try to blow it off, is incorrect. The fact is, this was really going on with our currency, don't believe me, try this one.
Back in 1964 and earlier, a quarter would buy you roughly a gallon of gas. Just because the quarter was made in 1964 and earlier were made of 90% silver and 10% copper. So the stop price of silver being $17.20 an ounce, this makes that course actual value $3.11. So you can see that same 1964 quarter will still buy you roughly a gallon of gas today. And in case you are wondering, it takes about five and half silver quarters to make up a full ounce of silver. This is a fact, the price of gold may fluctuate with the value of the dollar, this doesn't change the fact that precious metals such as gold and silver have maintained their value throughout time. And the only thing that changes is the value of the currencies that are not tied to gold and silver.
This is what the founding fathers warned us about and tried to prevent from happening with a constitution. What people need to understand is the excess printing of the United States currency is just another tax on the American people. It takes that value, the dollars that they have and makes them worthless in the long run. Meanwhile, you are still making roughly the same amount of money. The prices for everything from gas to milk are going up constantly when in fact nothing is really going up in price, it's the dollars actual value that's been dropping and not prices going up.
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