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Thursday, December 2, 2010

Another Christmas Gift Suggestion


When my grandfather died one of the things that fell into my possession was a box 2”X2” by 12” that came from Isom's general store. The box started life as a shipping container for thin black ties that everyone owned in the sixties for “Sunday go to meetin” day and the all to often fifties funeral.

It was a box of silver dollars, filled all the way down except for a bit of white tissue at the end. About 100 silver dollars in the blue flowered box would be my guess but I don't recall counting them.

Although I am sure I did count them and count them a thousand thousand times. They were left over from the fifties when his gin help expected to be paid on Friday. They expected to be paid in silver. By 1966 when Pop died silver was worth $1.25 per ounce and the coins contained an ounce of silver. So my inheritance was a couple hundred dollars at best.

By 2000 silver had rode the big bull and after going to $40 at one point in the Hunt Brothers years had settled to $6 each for a common date silver dollar.

Currently the cost of silver is about $14 and for all practical purposes a common date silver dollar is worth what one ounce of silver is worth.

As a closet numismatist it has long interested me that in 1966 - 15,000 silver dollars would buy you a nice three bedroom brick house. And in 2010 the same 15,000 silver dollars will buy you a nice three bedroom brick house in the same neighborhood.


The value of the silver – Or the value of a similar new house hasn't changed much in real sweat value

What has changed, is that in 1966 the average income was $6900.

Today it is considerably more in dollars but considerably less in real buying power.

About 2 ½ years income for a home vs 3 ¾ years work for the same home in 2010.

The 2.5 to 3.75 ratio is almost exactly the amount of devaluation of the dollar experienced since 1972.

The current selling of dollars to buy T-bills has done the same devaluation again.

An additional devaluation of the dollar means an additional devaluation of your labor and skills.

Additional years to work and earn that house.

I recommend as a Christmas Gift for your loved ones the Morgan Silver Dollar - CC - mint if you can manage it. Buy perfect Grade MS 60 or better.

The ultimate MADE IN USA gift for Christmas.

{Buy a couple for yourself and put them in your bug out bag.}



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