Inflation-Adjusted Cost of Gas is the Same as Before
Official retail gasoline prices say that in 1965 a gallon of gas cost $0.31 in the U.S.
Pre-1965 American quarter contains 0.18oz of silver. Today 0.18oz of silver is worth about $3.50, and 31 cents of the same silver-backed coins has 0.217oz of silver. At current spot price it’s about US $3.93 or the the average cost of a gallon of gas in the U.S. right now.
So in terms of silver the cost of a gallon of gas has remained constant. It’s the fiat money numbers that are going up. As more bank failures and additional money injections are expected, I think silver and gold will continue to increase in dollar price. I’m converting a portion of our savings into gold and silver to store value, not to make money.
It makes me so mad to think that I worked all these years and saved – all for nothing. This is my other nightmare, and while all of us should be horrified by inflation, I have personal experience with it which makes it all that more painful to watch. In fact, I along with about 150 million other people had lived through a period of hyperinflation. Really really don’t want to experience anything remotely close to that.
At present rate of inflation in North America (as U.S. CPI index went up 1.1% last month, that’s 13% annualized), your money’s worth will be halved in about 5.5 years.
Inflation is my other financial nightmare as I mentioned and I’ll talk about it more. Theme of the week will be inflation.