18 March 2009

1966 50c piece

Excellent demonstration of inflation and precious metals in the latest Global Speculator newsletter:

Back in 1966 each coin [the 1966 50c round coin composed of 80% silver and 20% copper versus the 12 sided 50c copper/nickel coin] would have purchased roughly:
· 250g of bacon rashers.
· A dozen eggs.
· 12 domestic stamps.
· 1 kg of lamb chops (loin)
· 2kg of bread
· 2kg of sugar

Today the 12 sided 50c piece will buy:

· 25g of bacon rashers (10%)
· 1 egg (8%)
· 1 domestic stamp (8%)
· 25g of lamb chops (loin) (2.5%)
· 125 grams of bread (6%)
· 300g of sugar (15%)

The 1966 50c silver round sold on EBAY for conservatively A$7.00 (silver price A$20/21 oz) buys:

· 350g of bacon rashers (150%)
· 18 eggs (150%)
· 12 stamps (100%)
· 350g of lamb chops (loin) (35%)
· 2 kg bread (100%)
· 4 kg of sugar (200%)

1 comment:

Bron said...

See also http://darienwealth.com/post/5586819921/does-gold-protect-purchasing-power