Once again, people are giving voice to expectations of silver suddenly rocketing much higher – but why? Even after its recent price rebound, silver is 65% cheaper than it was 8 years ago.
In January 1980, the price of silver peaked at $49.45 per [troy] ounce (the equivalent of $163.00/ozt in today’s dollars) which represented a 39x increase in little more than 8 years from its low in October 1971 at $1.27. There was talk about higher silver prices, as much as $100.00/ozt and more, yet, only a few months later, silver was down to $10.00/ozt which amounted to a decline of nearly 80% from its peak.
At today’s price of $17.50/ozt, however, silver needs to increase by almost 500% to reach the $100.00 mark and it needs to be at least $163.00/ozt just to match its January 1980 high. Think about that. Even if it manages to reach the vaunted $100.00 price, silver will still be 40% cheaper than it was 50 years ago.
The next time you hear that silver’s big day is just around the corner, ask yourself what has changed. Silver’s fundamentals are not much different today than they have been for the past half-century and silver’s price history doesn’t indicate anything that supports or justifies projections of $100.00/ozt and higher.
Editor’s Note: The above excerpts are from the original article by Kelsey Williams, and have been re-formatted, color highlighted, edited ([ ])* and abridged (…) by Lorimer Wilson, editor of munKNEE.com – Your KEY To Making Money! – for the sake of clarity, and brevity to provide 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.)
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