February 18, 2013
The market price of silver today is just under $30/troy oz. The constitutional silver dollar price of silver is
480/371.25 = $1.292992929/troy oz. This gives and implied CPI of 30/1.29293 = 23.20 which is close to official figures. I conclude that the silver price is consistent with CPI inflation.
The constitutional price of gold is 480/24.75 = $19.3939/troy oz. 19.3939*23.2 = $449.94/troy oz.
As the current market price for gold is slightly over $1600/troy oz. , I conclude that $1600 – $450 = $1150/troy oz.
of the price of gold is speculation on future inflation.