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When we look at the price of silver and gold, especially when adjusted for inflation, we see a lot of upside potential. Because we believe that the most exciting part of a bull market is at the end of the move, we believe that the best may still be ahead of us. Let us explain with the use of a number of very enlightening charts that support our contention.The above comments are edited excerpts from an article* by Investmentscore.com entitled Is The Silver And Gold Bull Market Over?
The following article is presented courtesy of Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds) and the FREE Market Intelligence Report newsletter (register here; sample here) and has been edited, abridged and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. This paragraph must be included in any article re-posting to avoid copyright infringement.
The article goes on to say in further edited excerpts: The chart below compares the 1980’s gold bull market top to the top in gold back in 2011. At first glance this move looks quite impressive.
The chart below compares one bull market to another by measuring the price appreciation from a bull market top to that same markets next bull market top. When we look at the “Top to Top” maximum appreciation in the current bull market compared to the other past bull markets we can see that significant upside potential may still exist.
Below is the same chart as above adjusted for inflation using the government published Consumer Price Index We can see that when adjusted for inflation, the price of silver and gold in the current bull market have yet to hit new highs…In our opinion, it would be very unusual for a bull market to end without the inflation adjusted price of that market to at least reach a new high.
The chart below, when adjusted for inflation, as measured by the U.S. government, clearly shows how the price of gold has yet to hit a new high.
The chart below illustrates how little the inflation adjusted price of silver has increased in value relative to the previous high set back in 1980. With government stimulus and money printing at an all time high, one would expect the price of silver to be much higher in 2014 than 1980. We would also like to point out that we used the government issued CIP as our measure of inflation and some believe this calculation to be bias to the downside.
Conclusion We find it very helpful to look at the “Big Picture” and compare historical market…[precedents] when trying to understand if a market is cheap or expensive. When we look at the price of silver and gold, especially when adjusted for inflation, we see a lot of upside potential. Because we believe that the most exciting part of a bull market is at the end of the move, we believe that the best may still be ahead of us.
Editor’s Note: The author’s views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.
*http://investmentscore.com/editorials/is-the-silver-and-gold-bull-market-over.php (Copyright 2007 – 2014 © Investment Score Inc. All Rights Reserved. To learn more about our analysis and sign up for our free newsletter, please visit www.investmentscore.com. Our website offers free editorials as well as a paid subscription service for those who are interested.) Related Articles: 1. Early 2017 Should See A Minimum of $3,600 for Gold & $100 for Silver! Here’s Why Since the start of June, typically the worst month for precious metals when looking at seasonal charts, gold is up $75 or 6% and silver is up over $2 or 11% while many of the mining stocks that we track are up 30% or more in the past 3 weeks. Prices normally start to gain momentum after June and close the year very strongly so, while a pullback tomorrow would not be surprising, I believe the trend will be towards higher prices for the remainder of the year. Read More » 2. Get on Board – NOW! We’re On the Verge of a Major Bull Market Advance Across the PM Sector. The charts below make it crystal clear that we are on the verge of a major bull market advance across the PM sector. While these charts are for the Market Vectors Junior Gold Miners ETF, what happens to the GDXJ has major implications for the whole sector, for the simple reason that it is not going up without the entire sector going up too. Read More » 3. Authors Of “The Money Bubble” Foresee $10-12,000 Gold & $500 Silver – Here’s Why James Turk and John Rubino are well known figures in the gold industry and they’ve just published a new book, ‘The Money Bubble’ in which they argue that the price of gold is about to soar to $10-12,000/ozt. – and silver to $500/ozt. Here’s why. Read More » 4. Incredible Bounce Coming Soon In Gold & Silver – Here Are 5 Reasons Why Get ready for an incredible bounce higher in the gold & silver junior miner sector. Here are five reasons why. Read More » 5. Gold Should Be At Least At $2,040/ozt. – Here’s Why The value of gold relative to oil (Brent Crude) is an embarrassing 11.2 to 1 ratio – way below its historical average – thanks to the manipulation by the Fed and member banks. When the price revalues higher it will do so SHARPLY and it will be PAINFUL for those on the wrong side of the trade or in worthless paper assets. Let me explain why that is the case. Read More » 6. Silver Presents A “Golden” Investment Opportunity – Here’s Why Silver has a reputation for being gold’s less desirable sister, but make no mistake, silver may still be a golden opportunity to invest in. Silver’s use is already very prevalent in the photography, consumer electronics, medical, and high tech industries and a major consumer of silver in the future will be the green technology sector in products such as solar cells and batteries. Read More » 7. Fed Funds Cycle Suggests Positive Outlook for Gold – Here’s Why Below is some interesting research by Doug Peta of BCA Research regarding the Fed Funds Rate Cycle, and what that research – as well as our own in-house research – could mean for gold to help you understand the positivity we see for the precious metal looking towards 2015. Read More »
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I enjoy the above charts, especially the Silver ones.
As I’ve said before, I believe Silver will outshine Gold as it does much better percentage wise.
Anyone else have an opinion they want to share?