I've read alot of journals lately by bullion holders who are getting all giddy about the prices of silver and gold going up, and up. It got me thinking about a few things. How much did a loaf of bread and a gallon of gas cost back in the early thirties? Well, they're both closing in on $4 now. Maybe gold and silver isn't worth more, but the U.S. paper dollar is worth a whole bunch less than it used to be. Back in 1932 you could trade a paper dollar for a silver dollar, and a $20 bill for a $20 gold coin. Our money was made of precious metal, and the only reason we had paper money was so we didn't have to lug around a bunch of weight. Now it takes $1500 U.S. paper dollars to obtain an ounce of gold and more than $40 for an ouce of silver. If the price of silver gets up to $1,000,000 per ounce, would you really consider trading an ounce for a million worthless pieces of paper that won't buy you a decent lunch? I wouldn't.
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