Dollars Into Gold

gold nugget

The U.S. dollar has lost 89% of its purchasing power over the past 59 years. The $10,000 life insurance policy held by the World War II veteran on his return home represented a significant amount of money in the 1940s. Now, that policy would barely cover the cost of a burial plot and funeral for a war hero. But the material decline in purchasing power is in no way a given, and the precedent for stable prices has a longer history than the era of inflation we have endured for three generations. From 1800 to 1929, the value of the dollar was stable – there was essentially no change in consumer prices for 130 years. It is ironic that the beginning of the inflation tidal wave started shortly after the creation of the Federal Reserve Bank in 1913, an entity designed to preserve price stability.                       metal detecting