What do you think is the true value of silver?

Discussion in 'Economics' started by peilthetraveler, May 23, 2009.

  1. I'm not talking in currency, but in its actual value. If the US dollar was destroyed overnight, what would be the value of silver in terms of labor?

    60% of the world lives on 2 dollars per day, so one might say that a weeks worth of work (14 dollars) is worth 1 ounce of silver.

    But we live in america where the average person makes about 200 dollars per day or 14 oz of silver per day.

    In the bible, (old testament) a horse from egypt cost 150 shekels of silver (60 ounces) or about 840 dollars

    A chariot cost 650 shekels (260 oz of silver) or 3,640 dollars

    To have tools sharpened back then cost about 2 to 3 dollars (1/3 to 2/3 of a shekel)

    Abimelech used 70 shekels (28 oz silver) or $392 dollars to hire "reckless adventurers" The old testament doesnt say how many adventurers that was hired.

    A days wage in the new testament was a denarius(for unskilled labor) which contained about 1/10 oz of silver or $1.40 worth of silver.

    So if you use the last one, you can see that times are pretty close to the same today as then. Most of the world lives on less than 2 dollars per day, and in ancient times it seems that most unskilled labor mades less than 2 dollars per day.

    Now convert that in terms of our economy. min wage is (i think) 6.50 per hour or 52 dollars per day which is 3.71 oz of silver...so our unskilled workers today makes 37 times more money for the same work while most of the rest of the world still makes that balanced amount of about 1 denarius per day.

    So i guess the real question is...how overpaid are we, or how underpaid is the rest of the world? So my best estimate is that when the dollar collapses, and the dollar aligns equally with the rest of the world(that we will be paid based on what we produce which isnt much), silver will be worth a little over 500 dollars per oz in our currency(and of course it will remain pretty much the same in most other currencies.)