Over the last 30 years, the purchasing power of the dollar has decreased due to inflation. Inflation is a general increase in the prices of goods and services over time, resulting in the reduced purchasing power of a given amount of money. As the cost-of-living increases, the same amount of money can buy fewer goods and services. It’s an unfortunate fact of life, one you should be prepared for with a balance portfolio of stocks, bonds and precious metals.
According to the US Bureau of Labor Statistics inflation calculator, the average rate of inflation in the United States over the past 30 years has been approximately 2.2% per year. This means that the same amount of money in dollars can buy approximately 47% less today than it could have bought in 1990. This does not include the high inflations years of 2022 or 2023, including those numbers would reduce the purchasing power significantly. $100 in 2020 is equivalent in purchasing power to about $116.24 today, an increase of $16.24 in that time-period, thus the inflation rate over those year totaled 16.4%.
For example, if we consider an item that cost $100 in 1990, it would cost approximately $230.18 in 2023 dollars due to inflation. This means that the purchasing power of $100 in 1990 dollars has decreased by approximately 60% over the past 30 years. Ouch, this is why stuffing your mattress with cash isn’t good!
It’s important to note that inflation rates can vary from year to year and can be affected by a wide range of factors, including changes in global economic conditions, geopolitical events, and government policies. As a result, the actual purchasing power of the dollar can be influenced by a variety of economic and financial factors.
How much would fifty cents buy you in 1960
In 1960, fifty cents had more purchasing power than it does today due to inflation. According to the US Bureau of Labor Statistics inflation calculator, the equivalent purchasing power of 50 cents in 1960 is approximately $4.41 in 2023 dollars.
So, in 1960, fifty cents would have been able to buy more than it can today. However, the specific items that could have been purchased for fifty cents in 1960 would have depended on a variety of factors such as geographic location, market conditions, and availability of goods at the time.
It’s worth noting that the inflation rate can vary from year to year and can be influenced by a range of factors such as economic conditions, government policies, and geopolitical events. Therefore, the purchasing power of fifty cents in 1960 may have been different in practice than what is indicated by the inflation-adjusted value.
How much is a 1960 silver half dollar worth today
The value of a 1960 silver half dollar, like any other coin, can vary depending on a variety of factors such as its condition, rarity, and current market demand. However, as a general guideline, a 1960 silver half dollar is typically worth more than its face value due to the silver content in the coin.
A 1960 silver half dollar contains approximately 0.3617 ounces of silver. As of February 18, 2023, the current price of silver is around $23.50 per ounce. Based on this current market price, the melt value of a 1960 silver half dollar would be approximately $8.49, the almost double the inflation value as noted above $4.41 in 2023 dollars. So it seems silver was fantastic, not only as a store of value but a near double inflation adjusted return and an 8.5X full return.