100-Year Silver Inflation-Adjusted Chart Tells An Interesting Story: Keep Buying
This long-term silver chart from (www.macrotrends.net) tells an interesting story, if you are willing to receive it:
- If silver was able to keep track of inflation, since its 1980 peak, it would have to exceed $110.
- With silver trading at round $15.98, about 15% of its inflation-adjusted 1980 peak, it is severely undervalued. You will be hard-pressed to find a commodity trading this low relative to 1980’s prices. For example, Gold, which is also undervalued, is currently trading at 58.2% of its inflation-adjusted 1980 peak.
- The chart has a very good “shape” for the fact that it made a very solid long-term bottom, in what can be described as a “double-bottom-type pattern” (1931 and 2001). The two bottoms came exactly 70 years apart – this is a good number for those who are familiar with cycles.
- This bodes well for the long-term price of silver, since the trend is likely to be up for many years to come.
- Silver reaching the 1980’s inflation-adjusted price of $110 is virtually a certainty, based on the underlying fundamentals of silver (which I will deal with in future posts), and the technical properties of this chart.
- In fact, much higher prices than the $110 should be expected.
- Price is currently at a very important level, from where a big move is inevitable. I have drawn a line from around the the 1917 high that links up with the 1968 high. There is currently a battle for this level, in order to determine the future direction for silver.
- It is very likely that this battle will soon resolve, with silver eventually breaking out to much higher prices. Note that this is an extremely long-term analysis, so short-term lower moves could occur, however, it will not detract from the long-term trend, which is higher prices for a long time to come.
- The moral of the story is to keep on stacking that silver!
This is not investment advice. I am just sharing my research. Do your own due diligence.
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@hgmsilvergold founder of SteemSilverGold
I believe the big move is coming in late July, now is near the bottom of the triangular pattern with US nonfarm payroll data releasing soon. Perfect timing to buy
yes. I think the best is to just average that cost price, buy buying every other day.
Good post. I think there is a widespread understanding that silver is the most undervalued commodity today. More and more people are recognizing the manipulation and Venezuela situation has certainly driven the point home that if you have silver you won't die of hunger. Venezuela has destroyed the narrative of nay-sayers that "no point having silver, you can't eat it" as 1 oz of silver is buying food for 6 months!
But I do want to make sure that people have real expectations on the increasing value of silver. They have to understand that the price of silver and gold are too important to be held down and as such despite it's potential for moonshot, it is not likely to happen soon.
Finally, I will leave with this thought: Silver will skyrocket in times of most turbulence and uncertainty such as what we are seeing in Venezuela. The question is do you really want prices to skyrocket? My personal thought is that I rather not have USA become Venezuela and have $600/oz silver.
well, thanks to the debt-based monetary system it is inevitable that you will have "turbulence and uncertainty" and yes, $600 silver. This is whether I want or don't want it.
600,-- USD/Oz. Up and away, fly!!! Good bye crypto-real-estate-FIAT-automobile scam.
for sure...
Great chart! People need charts nowadays in order to understand things. Keep up the great work!
thanks. agreed, it helps put things in perspective.
I need to go visit the LCS today to see what they have in Silver
get some more, just don't forget to show us what you got.
Was thinking the other day to sell some silver and gold to buy more crypto's, but I just can't bring myself to do it, I'm still way up on gold but down on silver. Still holding and waiting for the manipulation to end. One day :)
silver is really for people with patience. in my opinion. the reward will be great. I believe it will end soon. by the way, I know that you are well diversified - silver, gold and cryptos and even cash, debt free, so you should be fine.
What price your project the silver could reach in the long term? By the way interesting article!
for me it is not so much about the number it will reach, since it will in any case reach a point where no one would sell it for dollars. it is more about what it can buy in terms of goods(food, oil, houses, etc. but for the sake of interest I believe a price of around $1300 to be possible within the next 5 to 7 years.
Good post! Thanks for the info
thanks
Get out of all Paper Assets, including Paper Gold and Silver... Get out of the Old Paper Dollars... They will crash and it will take 100 old dollars to get one new dollar... The good news is that it will still take 100 Cents to get the same New Dollar, so be sure to hold onto all your Pocket Change...
@pocketechange
yes that is on point. actual metal will hold value.