What’s The Price Of A Dollar? And Real Value?
by Michael Campites, June 10, 2013
What’s the price of a dollar? What’s the value of a dollar? What odd questions. Yet, millions of people ask what are the respective prices and values of gold and silver? People look to find the spot prices of metals traded on the COMEX. Compare that to our paper fiat money, the dollar, which has virtually no intrinsic value. And what about price? Federal Reserve Notes are mere paper, and the value of paper is based on its utility to write on or burn. FRNs are unique forms of paper due to the phrase printed on them: “This note is legal tender for all debts, public and private”. This is what allows a privately held association to issue paper currency with the force of federal law, as if it were the federal government, as if it had the consent of the governed behind it.
Many ponder, Should I spend my hard-earned savings on gold or silver coins? What’s the price of 50 ounces of gold coins or 500 silver dollars? Those questions miss the money printing behavior of the central authorities. How can one compare today’s price for classic US coins compared to pieces of paper that exist in the trillions? A daunting task you may think. Well, as long as the monetary authorities expand the supply of paper (or digital) fiat currency, then their value must decline. So why not ask, what is the value of a dollar? Yes, it will always read the same face value on it, but has the face value held up? Do you expect the value to of paper currency to be stronger or weaker in the future? Take one from your wallet. Hold it with both hands and pull at it. Study it. What’s backing it? What’s its value? Its lasting value is nearly meaningless. Its current value is based on confidence and faith, rather than tangible utility. The more we hold this truth, the clearer it becomes that real, honest, sound money, is the prudent choice. Holding, storing, saving money that has intrinsic value will change your perspective and provide a focus that millions currently lack.