- Prior to 1965, the value of the United States dollar was set at 412½ grains (0.7736 troy ounces) of silver .900 fine.*
- At yesterday's close (Monex), the price of a troy ounce of silver was $37.05.
- Therefore, by multiplying $37.05 by 0.7736, we find that the silver value of the U.S. dollar is $28.66.
- The average price for regular unleaded gasoline in Columbus this morning is $3.46 per gallon (calculated by averaging the highest and lowest prices at columbusgasprices.com).
- By dividing $3.46 by $28.66, we find that the price of gasoline in the silver coin used prior to 1965 is 12.07¢ per gallon.
- The lowest unadjusted ("nominal") price for regular gasoline (which was leaded in those days) was 17¢ per gallon in 1931 (Department of Energy analysis).
- The wars in Iraq and Libya are simply excuses to waste American lives and materials to support the military-industrial complex at taxpayer expense, and
- The perceived increase in gasoline prices reflects the inflation that the United States has endured since the Federal Reserve Bank was established in 1914.
* Technically, today's silver bullion coins are at least .999 fine, which means that the old silver dollar of 0.7736 troy ounces should be adjusted for fineness to 0.6969; however this additional calculation is not necessary to establish the point I am making. Following through with this adjustment would yield a gasoline price of 13.4¢ per gallon.