Of course it's inflation adjusted. Check your source. Or just think about it; if in 1921 a 1 dollar coin containing 1oz of silver had a face value of $1 whilst the silver in it was worth $12 no one would use them for buying stuff they would all be melted down and sold for scrap silver at 12 times their face value.
And do you really think the US Fed would be paying $12 for 1oz of silver in order to turn it into a coin worth $1?
