Loading ...Back around 1980 Silver peaked at $50/oz. Everything from back then is about 20 times more. $2500 cars from that era X 20 equal $50,000 today. A slice of pizza and a coke was 25 cents, X 20 is $5 today. All the old $40,000 houses times 20 is $800,000.
So, 20 times the old $50 silver peak today, times 20 is $1,000 per ounce. Also at the old $50/oz, times 715 ounces of silver in each $1,000 face value bag was worth $35,750, you could buy a house back then with one bag of junk silver coins. $35,750 old bag price times 20 is $715,000.
The Fed fought like hell to stop the price gains gradually raised rates from 5% to 21% prime rate. Houses were $40,000 in 1970 and still $40,000 in 1980. The Dow I believe broke 1000 in 1968 and stayed below 1000 until June 1982 all because of those climbing rates. A 6% mtg on $40,000 is ok, but 6% on an $800,000 house is a lot more money.
In June 1982 I got a mailgram from the Dinesletter recommending selling all inflation related assents and put everybody in the Dow at 796. Every time the Dow got above 1000 he called it the graveyard in the sky above 1000.