Errosion Of Accord
24th September 2011, 11:23 AM
I'm making a road trip, and will be seeing an old military bud. I plan on giving his young daughters a silver dollar each, but I want to drop a note with it explaining why. What would you add to this for kids turning 18. Their father is a sharp guy who has done quite well for himself in farm land but I'd like to plant a little bit of silver bug into the family. Here's what I have so far.
Sept. 20, 2011
Me and your dad have been friends for a long time and I wanted to do a little something special for his beautiful daughters. I'm sure your mom has put this away for you until you can understand what I'm conveying.
In 1933 President Roosevelt confiscated Americans gold. Until that time there were actually gold coins in circulation. In 1972 President Nixon finished removing the U.S. dollar from the gold standard meaning that the dollar is linked to nothing other than the ability of the government to tax the income of entities residing in the United States.
In 1982 the U.S. Mint quit making pennies out of real copper because 100 pennies were worth more than one paper dollar. Pennies are now zinc plated with copper.
In 1964 the U.S. government discontinued using real silver in the nations coinage. This is because the Federal Reserve issues too much money and because the Federal government issues too much debt. These actions create inflation which devalues the paper money we use today. Because silver is a fairly stable commodity, some would say real money, the inflation caused by the Federal Reserve and the Federal Government devalued the dollar to the point that it was too expensive to continue putting silver into our coinage. In other words a silver dollar was worth more than a paper dollar. When that happened the U.S. Mint could no longer afford to create our coins with silver. In 1964 three silver dimes would buy a gallon of gasoline. Today (Sept 2011) three silver dimes are worth $6.72, and will nearly buy two gallons of gasoline at $3.53. Always remember that hard assets increase in value when compared to paper money.
I'm assuming that you are about 18 years old as you read this. How many paper dollars is a silver dime worth today? How many dollars does it take to buy a gallon of gas?
Sept. 20, 2011
Me and your dad have been friends for a long time and I wanted to do a little something special for his beautiful daughters. I'm sure your mom has put this away for you until you can understand what I'm conveying.
In 1933 President Roosevelt confiscated Americans gold. Until that time there were actually gold coins in circulation. In 1972 President Nixon finished removing the U.S. dollar from the gold standard meaning that the dollar is linked to nothing other than the ability of the government to tax the income of entities residing in the United States.
In 1982 the U.S. Mint quit making pennies out of real copper because 100 pennies were worth more than one paper dollar. Pennies are now zinc plated with copper.
In 1964 the U.S. government discontinued using real silver in the nations coinage. This is because the Federal Reserve issues too much money and because the Federal government issues too much debt. These actions create inflation which devalues the paper money we use today. Because silver is a fairly stable commodity, some would say real money, the inflation caused by the Federal Reserve and the Federal Government devalued the dollar to the point that it was too expensive to continue putting silver into our coinage. In other words a silver dollar was worth more than a paper dollar. When that happened the U.S. Mint could no longer afford to create our coins with silver. In 1964 three silver dimes would buy a gallon of gasoline. Today (Sept 2011) three silver dimes are worth $6.72, and will nearly buy two gallons of gasoline at $3.53. Always remember that hard assets increase in value when compared to paper money.
I'm assuming that you are about 18 years old as you read this. How many paper dollars is a silver dime worth today? How many dollars does it take to buy a gallon of gas?