Inflation and Silver

Amigo

I was going thru a Book on Sterling Silver Holloware that prompted me to do a few calculations. This is a copy of the Factory ledger showing all contemporary costs in 1895

What's your opinion. Are we in a wage Bubble right now, or is it Silver that hasn't kept up with inflation ?

1895 Direct Skilled labor costs of .40 cents average. Ranging from .30 to .50 an hour.
2013 Skilled labor cost vary substantially from one skill to the next, but $39000 appears to be the average. 2080 hr yr / $18.75 hr

1895 Silver cost 0.80 / ozt
2013 lets say $20 presently

1895 it took 2 hours to earn an ozt of Silver
2013 it only takes 1.06 hr for an ozt therefore we must be in a Wage Bubble

OR, is it the case that Silver hasn't kept up with inflation

2013 wages of 18.75 should take 2 hours to earn one ozt. 18.75 x 2 = $37.50 should be the price of one ozt Silver., but instead it apears to be working it's way down even further.

What's your opinion ? Wage Bubble or simply that Silver hasn't been a protection against Inflation over the last 100 yrs.

What about Gold ?
1895 $20.67 per ozt / 40 cents hr = 51.67 skilled labor hours
2013 presently $1230 / 18.75 hr = 65.6 skilled labor hours

It appears to me that Gold is by far the better Investment over the decades. Sucks for me. Or is Gold in a Bubble and will work it's way down further.

I know this is a simple analysis, but kinda fun to ponder.

RATZ, can't get the image to post of the Pitcher Billing Statement

[/URL][/IMG]

derryb

silver was much more common (and less demanded) in the 1800s than it is now. Gold has always been "precious." Eventually PMs will include copper.

RedneckHB

Overall the correlation is quite high. Damn wages leading to inflation.

JohnnyCache

Interesting Post

Pictures to assist the OP








JC