Silver Price Chart
dcarr
Posts: 8,457 ✭✭✭✭✭
I first posted this chart (without the green section) about a year and a half ago. I added the magenta line at that time. Prior to 2004, not much happened except the spike anomalies. After that, things have been different.
My purpose with the magenta line was to indicate that if you can buy silver for a price that is close to (or under) the line, that would be a good buy.
Now, one and a half years later, I have added the green section to show that the ramp (magenta line) is still valid. In fact, the ramp should perhaps be drawn a little steeper, since silver has gone from about $6 in 2004 to over $30 today (a 5x increase in 20 years). Some other "investments" have done better than that. But silver in-hand is generally a low-risk safe haven (no counter-party risk).
Comments
You know Dan, If you keep this up it's going to be harder for us to buy silver at a price that we like...Just saying
Nice chart.
I think there is an inflection point that started with the major increase in the money supply the past 8 years or so. My estimate is the blue line is where we are headed. Let's see how it looks in another year or two.
My US Mint Commemorative Medal Set
Your blue line shows an increase of about $1.50-$1.75 per year.
Knowledge is the enemy of fear
a close above the $32.50 resistance level will offer opportunity for a much higher price.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Around 5% a year might be a reasonable expectation. Spikes and dips along the way.
My US Mint Commemorative Medal Set
“US consumers' inflation expectations for the next 5-10 years skyrocketed to 7.1% in October, the highest in over 40 years,” noted analysts at The Kobeissi Letter. “This metric has DOUBLED in just several months, according to the University of Michigan Consumer Survey.”
“The US money supply hit $21.17 trillion in August, the highest level since January 2023,” analysts at The Kobeissi Letter highlighted. “This also marks a fifth consecutive monthly increase for the US money supply. Over the last 10 months, the amount of US Dollars in circulation has jumped by a MASSIVE $484 billion.
“In effect, the money supply is now just $548 billion below a new all-time high,” they said. “After a brief decline, the quantity of money in the financial system is surging again, raising concerns about another inflation wave. Is inflation set for a comeback in 2025?”
My US Mint Commemorative Medal Set
Does this mean money creation leads to inflation? LOL
And, will interest rates have to rise once again to fight inflation? What's a central bank to do?
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
I hope so.
But, would higher rates be good for PMs?
Knowledge is the enemy of fear
Yes
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Rising rates weren't good for rising PM prices in 22 or 23.
Knowledge is the enemy of fear
Money supply was actually dropping then. It is rising now. Look at my chart above.
My US Mint Commemorative Medal Set
they were in the late 70's
and in 2004
and since 2020
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Whata Day! Not gutter 2 me.
Shine On,
Mike
MIKE B.
Yeah... that is quite an increase today.
Silver be BOOMIN!
Philippians 4:4-7
And we're off!
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
I'm sure that blitz will say it's nothing.
I knew it would happen.
.
I'm pretty sure he will say something.
The same thing, in fact.
Like a broken record.
.
Making preparations to dump the boat anchors and doorstops. The chance only comes around about once a generation. RGDS!
The whole worlds off its rocker, buy Gold™.