Is the 156 year old cowboy ahead of the game yet?
Coinstartled
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Rufus Deacon is his name. Got a job at 18 at one of the Copper mines of Arizona. His first payday netted twenty two dollars. He used $2 to pay his boarding house rent and took the remaining twenty bucks to the Tombstone bank where he set eyes on the nice shiny 1879-S Morgan Dollars that old manager Angus Burk had in the vault.
Being a keen investor as well as a steer driver and shovel operator, Rufus bought 20 of the Dollars (they didn't have rolls then) and carefully stored them for his future.
None were gems but all were uncirculated. It is now 2017 and thinking of retiring at his old age, Rufus heads to the local dealer who offers him $600 for his 20 coins. He accepts the offer.
Did he profit on his investment?
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Let's ask Bob Brinker.
Gee Rollo. I didn't want to use your real name.
Depends whether Ol' Rufus is happy with something around 2.5% compound interest.
(Added: Paid yearly. A more complex calculation may come up with something more accurate).
Anyway, I think there were probably better investments along the way. "Buy Microsoft, Rufus!!"
Perhaps a $20 gold piece would have doubled his money, and been easier to store..?
Pacific Northwest Numismatic Association
Internet inflation calculator says $20 in 1879 equivalent of $462 today. Assuming no taxes, yes he would be modestly ahead.
Compound interest only starts really kicking in after 350 years or so.
He would have done far better at the General Store, as 1 pound of cocaine was $2 and a new Colt was $16 with 25 rounds.
So basically a Key and a gun, wait til 2017, and he would net a LOT more than $600
Didn't cowboys turn down all dollars that weren't DMPL?
I heard that they would shoot lesser coins.
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Rufus refused the offer to trade in a dollar for two rolls of 1909 S VDB's. He was afraid the copper wouldn't CAC 100 years later.
The simple answer is yes.... though he lost much more because he did not have a Redbook.....
Cheers, RickO
I should think telling people how to live to be 156 would be most profitable.
Two things, first off he would be dead, second, that is one heck of a long time for a $580 payout. Horrible investment IMO.