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While gold gets a lot of press in this economic environment, it is worth noting that silver devotees are making a lot of money these days.

February 8, 2012 – While gold gets a lot of press in this economic environment, it is worth noting that silver devotees are making a lot of money these days. At certain points in progression of the precious metals, silver has actually beaten gold in performance, though it tends to be more volatile in different ways. The gains silver has made since 2007 are extraordinary and many analysts are looking very seriously at the white metal on a technical level and anticipating further growth due to its availability and industrial uses.

The silver clique in cyber space comes out with a good educational video once in a while that explains a new fundamental or way of looking at the market. There is currently one in circulation that examines silver as the store of labor. The basis for the video is the historical value of silver as it was experienced in ancient Greece. Back then, it took a soldier twelve hours of hard labor, risking life and limb, to earn a silver Denarius. This is the equivalent to a Mercury dime, or one-tenth an ounce of silver as you would buy in an American silver eagle.

Consider an average laborer earning $8 an hour and working a twelve-hour day. They make $96, meaning the equivalent labor should imply a tenth of an ounce of silver should be worth $96. Remembering that the amount of silver it takes to buy a dozen eggs or a two bedroom one bath house has not changed at all in the past 30 years, the relatively constant value of silver is better way of measuring value than dollars. The video then makes a connection to factory workers at the turn of the 19th century who earned about 10 cents a day. That would be a dime, or tenth of an ounce of silver. Even the wages of factory workers around 1900 had not changed from ancient Greece and Rome.

If you consider that an ounce of silver actually represents ten days of hard human labor, the value of silver changes a bit in your mind. This is the historical value that has remained the same over the millennia. Gold is always great, but silver could be the best value you can buy considering the current spot price versus the historically inherent value.

Shannon King

Senior Staff Writer – GoldSilver.org

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