06-02-2016, 10:18 AM
[Galen]That spike in 1980 was the Hunt brothers trying to corner the silver market which wouldn't have happened under a gold or silver coin standard.
[Mike]Exactly. That was my point, you cannot extrapolate the value of a 1964 minimum wage of 0.96 oz silver to today using the market silver prices. You can using one of the inflation indices like the CPI. The point is, under a gold standard the ratio of the CPI and the POG is range bound with the former rising above the latter during wars and then falling back to the baseline afterward.
[Mike]Exactly. That was my point, you cannot extrapolate the value of a 1964 minimum wage of 0.96 oz silver to today using the market silver prices. You can using one of the inflation indices like the CPI. The point is, under a gold standard the ratio of the CPI and the POG is range bound with the former rising above the latter during wars and then falling back to the baseline afterward.