In 2016, the Tooth Fairy Index Rose by almost 20 Percent
Based on the “Tooth Fairy” index, inflation appears to be heating up again, which should prove positive for gold and silver. The Tooth Fairy index is a remarkably accurate inflation gauge that was originally conceived and sponsored by Delta Dental. According to the index, the average parental payment for a tooth under the pillow in 2015 was $3.91 and rose to $4.66 in 2016 for a 19.2 percent year-over-year gain. Payouts for a child’s first tooth, typically higher that the average, are also up almost 10 percent to $5.72.
The Tooth Fairy index is not a random survey of local parents. It’s actually a scientific poll that includes 1,588 parents of children ages 6-12. Conducted during the week of Jan. 24-31 each year, the resulting margin for error is just plus-minus 2.5 percent.
This poll also indicates a general rise among families of disposable income. Regionally, payments of Tooth Fairy index were highest out West at $5.96 ($6.89 for first teeth), followed by the Northeast ($5.08 and $6.31), the South at $4.57 ($4.88) and finally the Midwest $4.04 ($5.70).
Inflation is Rising Elsewhere in the Economy as Well
After lying relatively dormant for the past five years, inflation is finally returning, and that’s a good sign for gold and silver, which are historic hedges against rising inflation. In the United Kingdom, commodities fund manager James Luke of Schroeders said gold and silver, hedges against inflation, are “under-owned” since the quantitative easing – and the associated printing of money – by central banks around the world portends higher inflation in the future.
As more of the world’s population moves into the middle class and can begin to see the value […]