Gas costing a dime? Yes, when dimes were made of silver. Congressman and presidential candidate Ron Paul says if we go back to using silver dimes (see video below), one of those dimes could be traded for about one gallon of gas. It would actually take two silver dimes, but Ron made his point. This compares to needing about four or five Federal Reserve dollars for one gallon of gas today.
A pre-1965 dime contains 2.25 silver grams or .072 silver ounces. With a silver price of $34, one dime is worth $2.34 or about 1/2 gallon of gas, meaning two dimes can be traded for about one gallon of gas.
Today dimes are made of nickel and copper. The change from silver to common metals parallels the change from using gold to using paper. In both cases, money used to be a product with much higher value. Silver is worth more than nickel and copper, and gold is astronomically more valuable than paper. Yet, the government and the media convinced people they were worth the same.
You can still purchase pre-1965 silver dimes (from here) or buy new coins in equivalent sizes to use in case some one won’t take Fed dollars. Silver dimes are also sold as part of “junk silver” bags even though it’s far from junk. However you might have a hard time convincing people your dime is made of silver.
If people used silver as money, they would monitor the value of silver. Most people don’t monitor the value of the Federal Reserve dollar, to their detriment. It’s worth about eight pounds of wheat, down from 12 pounds in 2010.
I presume the U.S. took in a silver dime and then passed out a nickel/copper dime. What happened to the silver? For that matter, what happened to the gold? This is similar to kings who used to melt down and remint coins with their faces but reduce the gold content slightly in the process.