Gasoline at 20 cents a gallon

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Published : May 17th, 2011
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Category : Market Analysis

 

 

 

 


Sign at Ashland, Oregon station. (Thanks to Katcha Sanderson for the photo.)

Two Roosevelt dimes contain 0.14468 oz of silver. If gas costs $4 in FRNs, then the implicit price of silver that makes $4 equivalent to 0.14468 oz of silver is $27.65 per ounce. So, this price seems roughly in the ballpark. But, if we take $35, which is nearer today’s silver’s price, then the implied price of gasoline is $5.06, which is steep. At any price less than $5.06, I’d hold on to the dimes and use FRNs. One has to be careful about these things.

One also needs a conversion table. This could be sold as an application on a handheld device. I’m giving away a profitable idea here. The device could read in the spot price of silver from a web site. The user punches in the FRN price. Then the equivalent amount of silver coin is the output.

Michael S. Rozeff

 

 



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Michael S. Rozeff is a retired Professor of Finance living in East Amherst, New York. He is the author of the free e-book Essays on American Empire. He publishes regularly his ideas and analysis on www.LewRockwell.com . Copyright © 2009 by LewRockwell.com.
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