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Money Metals News Alert
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September 15, 2025
– Silver galloped higher last week, while moved higher at a more sedate
pace. Silver put on about $1.20/oz, nearly 3%. Gold picked up about close to 2%.
Stock prices also moved higher. The
U.S. Dollar weakened once again, as measured by the DXY index. Bonds were mostly
flat, with the 10-year Treasury ending the week at 4.07%.
The markets have had a muted reaction
to the news of Charlie Kirk???s murder, but the potential political and societal
ramifications are high. As Kirk said, ???when people stop talking, that???s when you
get violence.???
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Gold : Silver Ratio (as of
Friday's closing prices) – 86.3 to
1
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The Cost of Living Is Falling Fast…
Relative to Gold
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Americans are feeling the pinch when
it comes to price inflation. Rising prices are a political football with
politicians on both sides of the aisle eager to pin blame on the other party.
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Both sides are correct.
Politicians, along with the central bank they created and continue to endorse, are
fully responsible for the affordability crisis and the fading American dream.
Few young people can
afford to buy a home. Simply paying rent and buying groceries is out of reach for
some. Politicians may try to leverage this growing frustration, but their
solutions have not helped.
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Most Americans don???t understand the
root of the problem. Prices are not going higher. Instead, the U.S. dollar (like
other fiat currencies) is going to down the drain.
If more people understood the
yardstick that we use for prices – the dollar – was being debased, it
would change the way they invest and save.
The best way to illustrate what is
happening with prices is to use a different yardstick. Take a look at what has
happened to prices measured against gold.
Housing is a good place to start.
According to the U.S. Census, the
average home price in 2000 was $119,600. The average gold price for that year was
$279/oz. That means it took roughly 429 ounces of gold to buy a home.
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In 1970 it took 665 ounces
of gold to buy the average house.
Today the median home
price is $410,000, while gold is currently priced at roughly $3,660/oz.
It now takes just 112
ounces of gold to buy a home. Home prices have fallen dramatically over the past
55 years, if you measure with a more reliable yardstick.
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How would home affordability look for
young people if they began saving for down payments using gold rather than
dollars?
Let???s take a look at groceries. The
typical U.S. household spent $1,140/year on groceries in 1970. That would have
been the equivalent of 32 ozs of gold.
In 2000, the annual cost of groceries
was $2,900.00 or about 10-½ ounces in gold equivalent.
Last year the average household spent
$6,053 on groceries, while the average gold price was $2,389/oz. The price of
groceries relative to gold had fallen to just 2-½ ounces.
What happened to the cost of
healthcare since 1970 is also interesting. Households spent $356 on average that
year – not quite 10 ounces in gold equivalent.
Thirty years later, the average cost
of healthcare in dollars had risen to $2,129. But it fell to about 7-½
ounces of gold.
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In 2024, households spent
an average of $6,168 dollars. That is just 2-½ ounces of gold equivalent.
The trend is similar for
virtually all items included in American???s cost of living. Costs are exploding in
terms of dollars, but they are collapsing relative to gold.
It is, unfortunately, next
to impossible for most Americans to completely avoid being caught by the decline
of the dollar.
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After all, wages are paid in dollars
and people need dollars to pay the bills.
Unless politicians are talking about a
return to honest money – dollars which are redeemable in gold – they
aren???t offering a genuine solution to the problem.
In the meanwhile, Americans should do
what they can to implement a personal gold standard. That is to say, put excess
savings into gold (and silver) rather than dollars and avoid investments in fixed
dollar assets – such as CDs or bonds.
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This week's Market Update was
authored by Money Metals Director Clint Siegner.
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This copyrighted material may not
be republished without express permission. Offer only available through email
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