Did You Know The Price Of Gasoline Hasn’t Gone Up Since 1967?

Silver quarter, inflation and gasoline prices
I did a fun investment thing this weekend.  I turned my pocket change into .999 pure silver.  I always get a kick out of that.

Because the “hold in your hand” silver is beautiful to look at.  And because I know I am beating inflation when I do this.

Every night when I come home from work I put my pocket change in an old Folgers coffee can.  I don’t think the brand of coffee is significant.  Let’s just say I am a man with his own traditions.

But what is important is that the amount of money in the can builds up over time.  So after about four or five months, the can fills up.  Then I take the can to the grocery store and empty it into one of those change machines you see.

The machine counts the change and gives me a receipt.  I take the receipt to the service desk and they give me cash.  This trip they gave me $119.  Nice.

Then I take the cash to my local coin dealer and buy one ounce .999 pure silver rounds with it.  Since silver rounds were going for about $35 an ounce this weekend, I came home with three ounces of pure silver.

Had I kept the change, it would have continued to lose purchasing power.  Do you know that the dollar has lost over 40% of its purchasing power since 2000?  And if you look at the simplified chart above, the dollar in 1900 is now only worth about three cents.  Wow!  That’s inflation for you.
But my silver won’t lose purchasing power.  I could have bought quarters minted before 1965, when they really had silver in them.  And these REAL SILVER quarters would have bought just as much gasoline at the pump today as they would have in 1967.

Because in 1967 a gallon of gasoline cost just $.25. And today, the silver content in one of those quarters is worth about $4.00 – the price of that same gallon of gas.

So the price of gasoline has not really gone up – in terms of real money – that is to say silver.  It’s the value of the dollar that has gone down.  And that’s due to inflation caused by the government printing more and more dollars — to cover greater and greater deficit spending.

And you thought the price increases were due to those evil oil speculators.  Hmmmm … I think that’s what the government would like you to believe.

So if you want to beat the inflation game, start saving your pocket change.

And go get yourself an old coffee can.  I think Folgers is the best.  Anyhow, it seems to work pretty good for me.

To your health and prosperity – John

P.S.  Here’s a quick way to count your change.  Just weigh it.  You’ll have over $10 a pound.  For example, my coffee can full of change weighed 8.5 pounds and was worth $118. Of course that will vary if you hold out certain coins.

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