I read somewhere recently that in the early 1960s, the U.S. minimum wage was US$1.25 per hour. The author commented that it meant that for each hour worked, a person received five quarters. That seemed like a paltry sum until I realized that five silver quarters contain 0.9 ounces of silver. At today’s price of US$23.69 dollars per ounce on Kitco, the modern-day equivalent is US$21.32 per hour. Suddenly, that no longer seems so paltry. In the early 1960s, the Canadian dollar and U.S. dollar often traded close to par. Today, the Canadian dollar is trading at 1.33. This means that using silver as a proxy, the minimum wage in Canada today would be C$28.36 per hour to have the same value as the early 1960s. Suddenly, calls for $15 or $20 per hour no longer seem so unrealistic to me. Paper currencies simply hide the deterioration in purchasing power that cannot be hidden using precious metals.

I read somewhere recently that in the early 1960s, the U.S. minimum wage was US$1.25 per hour. The author commented that it meant that for each hour worked, a person received five quarters. That seemed like a paltry sum until I realized that five silver quarters contain 1.00 ounce of silver. At today’s price of US$23.69 dollars per ounce on Kitco, the modern-day equivalent is US$23.69 per hour. Suddenly, that no longer seems so paltry. In the early 1960s, the Canadian dollar and U.S. dollar often traded close to par. Today, the Canadian dollar is trading at 1.33. This means that using silver as a proxy, the minimum wage in Canada today would be C$31.50 per hour to have the same value as the early 1960s. Suddenly, calls for $15 or $20 per hour no longer seem so unrealistic to me. Paper currencies simply hide the deterioration in purchasing power that cannot be hidden using precious metals.