I am sure like me, you are also getting tired of hearing that we need to stack up on silver as it provides the store of wealth. So before jumping into the conclusion (and it is a very complicated conclusion indeed!), I quickly created a table comparing some of the key data points from 1938 and 2017. Please see the table below:
If you look at the column "2017 - as % of income", you can see that while some of the items have clearly gotten out of whack such as cost of new home or education or taxation but in general for a day-to-day living we are actually faring better than 1930s. We are able to save more today than what we did in 1938.
However when you refactor all the expense types as a ratio of silver price, column " 2017 - silver purchasing power", it is obvious that silver clearly DOES NOT store wealth! (red color indicates wealth erosion). For example, in 1938 you could buy 75 gallons of gas per ounce of silver where in today you can buy only 6.9 gallons of gas per ounce of silver!
So where is the disconnect? Either silver prices as heavily manipulated or they truly are not appreciating in line with inflation. I don't know the real answer but certainly it forces you to ponder if you need to go all-in in silver or gold for that matter - dreaming of becoming rich overnight might not pan out. Assuming that the prices of silver/gold are truly suppressed then the silver prices have to go up by a factor of 22 to be considered as an instrument for wealth preservation. That means the prices have to go up to $369 per oz! OR the prices of other items have to come down.
What conclusion can you draw? - Leave your comments, upvote and resteemit.