In 1900 the average wage for an unskilled worker in the US was $1 in silver per day. The Morgan Silver dollar minted during this time period contained .7735 troy ounces of silver. So a worker could expect to earn about three quarters of an ounce of silver per day with which he was expected to support himself and his family.
Using a calculator found on measuringworth.com, we find that the same unskilled worker in 2009 would need to earn $122 US per day in order to "enjoy" the same standard of living his ancestor had in 1900 with his silver dollar! Of course, our paper dollars and coinage today are made from worthless unbacked paper and base metals, unlike the Morgan Silver dollar that compensated our 1900 working man. However, a very interesting conclusion can be drawn about the comparative price and value of silver today if we look at these numbers a bit closer.
If the buying power of one 1900 silver dollar is roughly equivalent to $122 in 2009 US money, then why isn't silver selling for $122 for three quarters of an ounce of the precious metal (or around $158 per troy ounce)? The answer is that the price of silver has been manipulated and suppressed by the US Government and the banks for decades.
At the writing of this article silver is hovering around $26.75 per ounce. With the world economies in recession, and eternal wars in Iraq and Afghanistan dragging on, the case for silver finally rocketing to it's true market price exceeding $150 per ounce is looking more and more like a slam dunk.
PS. GOLD BUGS: If our worker had chosen to be paid for five days labor with a 1900 $5 Liberty Half Eagle gold coin, he'd have earned about .242 ounces of gold for his five days of labor. In 2009 he would have needed $610 US to maintain the same living standard. At $610 for almost one quarter ounce of gold means gold should be selling for almost $2500 per ounce instead of the present $1364!
PPS: Gold should double in price in the near future, based on the above wage equivalents, but silver has a lot more room on a percentage basis to grow from $26.75 to $150. Buy gold and silver now!
Time is running out fast! Hyperinflation seems unavoidable as fiat paper money is being printed as fast as the US presses can run. To protect your wealth and your family, buy gold and silver now from these top companies, APMEX Gold and Silver and GoldSilver.com.
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