If you have read any news lately, you will hear about Quantitative Easing and the injection of several trillion dollars into the economy by the Federal Reserve (For a history of the Federal Reserve, please check out this book in paperback or on Kindle.). Zero Hedge has many articles on this.
Over time, since the introduction of the Federal Reserve, the dollar has lost nearly95.8% of the purchasing power, if you do the calculations. That means that $1 in 2014 is worth 4¢ in 1913. The other way to look at this is $1 in 1913, is worth $23.87, or 2286.8% difference. When your parents say that they could’ve gone to the movies for 25¢, or bought dinner for 65¢, they weren’t kidding.
The money your parents used was made of 90% silver, and until 1971, the dollar was backed by gold at $35/oz. Due to printing of cash by the government, however, President Nixon took the dollar off the gold standard, and gold skyrocketed in price, reaching highs over $1800 in 2011. Had you bought just 10 gold 1 oz eagles in 1971, spending just $350, you’d have today about $12,850, a profit of about 36.7 times over.