Gold
Visualizing the Real Value of the Minimum Wage
Visualizing the Real Value of the Minimum Wage
The minimum wage has often been a contentious issue, and in 2017 the debate shows no sign of wearing.
On the one hand, there are many people struggling to make ends meet, and a higher minimum wage could certainly impact the 10 million working poor spread throughout the country. Not only would it help some of these workers sustain better living standards, but some research also shows that an increase can actually help certain types of businesses, and that job losses from a higher wage are usually minimal.
From another angle, however, many economists see a higher minimum wage as any other supply and demand situation. Arbitrarily raising the price of labor limits the demand for that labor – and in places like Seattle, recent studies have shown that the minimum wage increase is hurting the people it is supposed to help.
To complicate things even further, the prospect of increased automation in the workplace is also a factor that affects these outcomes.
The Real Minimum Wage in Context
Putting this debate aside, today’s visualization from cost information site HowMuch.net reveals some interesting points to consider about the minimum wage, which help put the numbers in context.
By adjusting the minimum wage for the Consumer Price Index (CPI) over time, it shows that in the last 25 years there has been no real increase in the minimum wage. Inflation has quickly erased any adjustments, keeping it stagnant for years.
Further, in real terms, the minimum wage peaked in value in 1968, just before Nixon severed the connection between the dollar and gold. In the inflationary years that followed, the real minimum wage eventually dropped to $6.77, a staggering 41.0% decrease. The real wage has basically hovered between $6.50 and $8.00 ever since.
Precious metals advocates make an important point about this: the minimum wage in nominal terms in 1964 was $1.25, or five silver quarters. If you were to cash in that silver today (~$17.15 per oz), the melt value would be $15.50, which is actually double the current minimum wage.
Action at State and City Levels
Today, the majority of U.S. states have higher minimum wages than the federal amount of $7.25.
States with the highest minimum wages include Washington ($11.00), Massachusetts ($11.00), California ($10.50), Vermont ($10.00), Arizona ($10.00), and Connecticut ($10.00). Washington, D.C. also has its minimum set at $11.50.
Here are the 29 states that have higher minimums, according to Bankrate.com:
And here are the upcoming schedules for the minimum wage increases in some major cities, including Los Angeles, Seattle, and New York City.
By 2025, the highly-debated Seattle minimum wage is anticipated to hit $18.00 for all types of businesses.
Mining
Visualizing the New Era of Gold Mining
This infographic highlights the need for new gold mining projects and shows the next generation of America’s gold deposits.
Visualizing the New Era of Gold Mining
Between 2011 and 2020, the number of major gold discoveries fell by 70% relative to 2001-2010.
The lack of discoveries, alongside stagnating gold production, has cast a shadow of doubt on the future of gold supply.
This infographic sponsored by NOVAGOLD highlights the need for new gold mining projects with a focus on the company’s Donlin Gold project in Alaska.
The Current State of Gold Production
Between 2010 and 2019, gold production increased steadily, though this growth has stagnated over the past few years.
| Year | Gold Production, tonnes | YoY % Change |
|---|---|---|
| 2010 | 2,560 | - |
| 2011 | 2,660 | 3.9% |
| 2012 | 2,690 | 1.1% |
| 2013 | 2,800 | 4.1% |
| 2014 | 2,990 | 6.8% |
| 2015 | 3,100 | 3.7% |
| 2016 | 3,110 | 0.3% |
| 2017 | 3,230 | 3.9% |
| 2018 | 3,300 | 2.2% |
| 2019 | 3,300 | 0.0% |
| 2020 | 3,030 | -8.2% |
| 2021 | 3,090 | 2.0% |
| 2022 | 3,100 | 0.3% |
Along with a small decrease in gold production in 2020, there were no new major gold discoveries in 2021.
The fall in production and long-term lack of gold discoveries point towards a possible imbalance in gold supply and demand. This calls for the introduction of new gold development projects that can fill the supply-demand gap in the future.
Sustaining Supply: Gold for the Future
Jurisdictions play an important role when looking for projects that could sustain gold production well into the future.
From political stability to trustworthy legal systems, the characteristics of a jurisdiction can make or break mining projects. Amid ongoing market uncertainty, political turmoil, and resource nationalism, projects in safe jurisdictions offer a better investment opportunity for investors and mining companies.
Today, 10 of the top 15 mining jurisdictions for investment are located in North America, according to the Fraser Institute report published in 2023.
A Golden Opportunity
Located in Alaska, one of the world’s safest mining jurisdictions, NOVAGOLD’s 50% owned Donlin Gold project has the highest average grade of gold among major development projects in the Americas. For every tonne of ore, Donlin Gold offers 2.24 grams of gold, which is more than twice the global average grade of 1.04g/t.
Additionally, Donlin Gold is the second-largest gold-focused development project in the Americas, with over 39 million ounces of gold in M&I resources inclusive of reserves.
NOVAGOLD is focused on the Donlin Gold project in equal partnership with Barrick Gold.
Learn more about Donlin Gold .
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