Crazy Predictions For Much Higher Silver Prices Are Unwarranted

Crazy predictions for much higher silver prices are unwarranted and unsupported by historical performance…and some silver investors and analysts could use a dose of reality [and that is provided in this article.]

Below is a chart of silver prices dating back to 1915.

Silver Prices – 100 Year Historical Chart

…Looking at the chart above, one might get the impression that silver is in a (very) long-term bull market as its 90-year trend appears well-supported. Its primary progression higher, however, occurred in the earlier years between 1940-80 and since then there has more extreme volatility, both up and down, and less of the trending, higher price action seen previously….

The next chart illustrates how deceptive and inadequate silver’s long-term price increases are:

Silver Prices (Inflation-Adjusted)  100 Year Historical Chart

As you can see, the peak price for silver in 1980 – $36.00 per troy ounce on the first chart – is now $124.00/ozt. which means that, in inflation-adjusted terms, buying silver at $36.00 ozt. in 1980 and selling at $48.00 ozt. in 2011 resulted in a real loss of 53%!

…The silver price today needs to be at $124.00 ozt. to match its peak average closing price of $36.00 ozt. in 1980 (silver’s intraday peak price of $49.45 ozt. in January 1980 was an all-time high and has not been exceeded since; either in nominal or inflation-adjusted terms…) and if silver did, indeed, suddenly rocket higher to $125.00 oz., it would only be matching its 1980 high. That’s a lot of water under the bridge in 41 years just to break even.

CONCLUSION

Having some silver coins on hand offers some peace of mind against the possibility of currency collapse and civil unrest but much higher silver prices are unwarranted and unsupported by  historical performance…

Editor’s Note:  The above version of the original article by Kelsey Williams, has been edited ([ ]) and abridged (…) for the sake of clarity and brevity to ensure a fast and easy read.  The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article.  Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor. Also note that this complete paragraph must be included in any re-posting to avoid copyright infringement.

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