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Inflation and Silver

AmigoAmigo Posts: 966 ✭
in Precious Metals


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

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