According to the Commodity Research Bureau Index over the last 10 years using a basket of 10 items, we have had an inflation of 50 percent in those raw goods. Yet if you use the official government figure, it is 22 percent.
The CRB number is real and doesn’t account for additional value added from labor, delivery costs and marketing. In simple terms I would say the real rate of inflation is triple what officials tell us. In terms of precious metals, it is even higher although that is more likely due to the true monetary value much of the world places in them. The coin market has exceeded my real inflation numbers and if you eliminate modern, made-for-collector items (especially those of ultra-high grade) it has surpassed most other indexes by a mile.
Look at a common Morgan dollar. It has tripled. That could be attributed to the dramatic rise in silver, so instead look at the Lincoln cent. It has more than doubled from the common Wheat cent roll to key dates. A 1901-S quarter has tripled. There are some laggards, but I think if you average out a properly graded and reasonably assembled collection .you will find that you have beaten inflation. Morgan dollars have softened in EF-40 to MS-65. I believe this is the market readjusting to the sharp drop in silver four weeks ago. Proof and mint sets are a sinking ship.
E-mail harrymkrause@optonline.net.
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