Saturday, April 23, 2011

Silver Comes Into Vogue

The 1964 Kennedy half-dollar has a nominal value of $0.50, however the coin has a market value today of roughly $18.70, given its 90% silver content. Assuming a person had acquired this coin in 1964 at its nominal value, and then sold the coin today at market value, the realized annual rate of return would be approximately 8% (N = 47, PV = -0.50, FV = 18.70).

An 8% annual rate of return is certainly better than current savings rates...

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