Under is a chart (supply) exhibiting a 10-year historical past of silver prices. The costs are adjusted for inflation…
When the silver price collapsed nearly forty p.c in only a few weeks earlier this 12 months, its worth briefly broke beneath $12 per ounce. That was its lowest level for the reason that August 2011 peak. Silver then rallied strongly to new restoration highs of slightly below $30 per ounce, at $29.26.
The $30 stopping level for silver was not random or arbitrary.
The chart (supply) beneath is a 100-year historical past of silver costs. The costs date again to 1915 and, once more, are adjusted for inflation…
The dashed line on the chart at $30 per ounce exhibits that almost all of silver’s worth motion for the previous century has been beneath that mark. Of the 105 years proven, the silver worth solely traded above $30 on two events totaling barely greater than 4 years.
In case you are bullish on silver, what’s it that you simply anticipate to alter so radically sooner or later that can wipe away the previous century of persistently decrease costs for the white steel?
We could very properly have seen the lows for silver at $11.77 earlier this 12 months. however contemplate this.
In February 1991, silver traded at $3.55. At that worth, it had fallen ninety-three p.c from its excessive of $49.45 in January 1980.
The $3.55 worth proved to be absolutely the low for silver at the moment and it traded as excessive as $7.81 in 1998. Sadly, it additionally traded as as little as $4.07 in 2001, which is ninety-two p.c lower than its peak greater than twenty years earlier.
The implication is worse once you have a look at the chart instantly above. The nominal worth of $3.55 was absolutely the low, however the $4.07 inflation-adjusted worth in 2001 was cheaper by seventeen p.c – almost eleven years later.
When silver dropped to $11.77 in March this 12 months, that worth was silver’s lowest since its peak in 2011. In case you purchased at that worth, congratulations! You could have doubled your funding in six months time. However what do you do now?
Apart from the 2 transient events famous above, silver has traded beneath $30 for greater than 100 years. There’s little or no revenue potential for silver at its present worth and loads of room on the draw back.
Kelsey Williams is the creator of two books: INFLATION, WHAT IT IS, WHAT IT ISN’T, AND WHO’S RESPONSIBLE FOR IT and ALL HAIL THE FED!