Precious Metals vs The Formidable Loss Of Purchasing Power Of The Dollar

If you had purchased $100 in gold in 1971, it would be worth over $3,040 in today’s dollars. But if you had left your $100 in cash, you would still have only $100 in cash, which today only retains about 17% of its former value. Similar to gold, if you had purchased $100 in silver back in 1971, it would be worth over $1,200 in today’s dollars.

Because the Federal Reserve continues to print money out of thin air, or inject new dollars into the financial system with mere keystrokes, real gold and silver will continue to rise in nominal dollar price.

As the purchasing power of the U.S. Dollar decreases by the year, investors are turning to precious metals. The public has not yet figured out that the dollar’s devaluation is ongoing and that holding physical precious metals rather than cash is an effective way of protecting their purchasing power over time. Grasping the concept of dollar devaluation is difficult for many. One of the most effective methods used to illuminate this concept is through illustrations.

Money Metals Exchange, a gold and silver bullion provider, has created a very interesting infographic which summarizes and illustrates all this.

 

infographic_gold_silver_value_2014

 

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