“Let the influx of money be ever so great, if there be no confidence, property will sink in value…The circulation of confidence is better than the circulation of money.” -- James Madison, Speech, Virginia Convention, June 20, 1788
According to data from the University of Illinois professors Lawrence H. Officer and Samuel H. Williamson, the value of the dollar had depreciated so much by 2008 that it took $5.31 to buy what it cost $1 in 1971 when Nixon decided that the dollar would no longer be backed by gold. Until then, $35 could buy a troy ounce of gold every day. Our dollar today is worth less than 19 cents when compared to 1971 and the price of gold fluctuates between $1,500-1,700 per ounce.
