London Silver Price

Robert Wood – Sociologist –
Is Silver expensive? That depends on your point of view and how much Time and Money you are willing to pay for one ounce of the White metal.

In 1866 the price of one ounce of Bar-Silver was 60 pence. The next 30 years the price decreased 50 % and at the end of the century it was traded for 30 pence per ounce.
   Today, 1st Mars 2018, the London Silver Fix has decided that you will have to pay GPB 11,88 (US$ 16,31) for one ounce of Bar-Silver.
   It is difficult to compare the historical prices of 60 pence an ounce in 1866 and 11,88 pounds an ounce in 2018. Quite a few elements of reality have changed over the years, but if I pick out one single variable: How long did an average adult male have to work to buy one ounce in 1866 versus 2018? I can, thereby, draw the conclusion that silver has become cheaper relative to the numbers of hours an adult male had to work. I quote:

For the earlier years I start with a benchmark in 1866. Leone Levi estimated the average adult male wage in England in 1866 as 45 d. per day (Levi, 1867, 9). Levi also estimated the numbers of boys, women and girls at work, and their relative wages. This implies an average wage per employed person of 32.1 d. Assuming an annual number of days per year worked of 300, this implies average yearly earnings in 1866 of £41.67.

The average adult male had to work 14 - 15 hours for one ounce of silver in 1866. So, if you are buying physical silver as a collector or hoarder, ask yourself; How long do you have to work to buy a 2018 Britannia One Ounce Silver Coin which 1st Mars 2018 costs approximately £ 19 over the counter? Then you can decide if silver is expensive or not for your purse.