Is The Silver Price Where It Should Be

Tracking the silver price and determining its fair value may well be one of the trickier topics in finance. Because in addition to there being a few different ways in which market participants feel it should be priced (monetary metal, industrial commodity), there's a rather non-linear price history which sets a wide range of expectations for those who invest in or follow the silver market.

Obviously 2 key data points that stand out are the spikes to the $49-50 range in both 1980 and 2011. Which have a lot to do in terms of setting expectations of what many investors feel the silver price can do in extremely volatile environments. And that's left many investors baffled in terms of the current $25 price that's half of the highs experience 43 years ago, despite more currency, debt, and silver demand in the world than ever before.

Yet if you remove those 2 spikes and take another look at the silver chart over the past 50 years, there's a degree to which the silver price looks like it's right on track. It shows an upward sloping curve that's similar to gold or the US debt load, with the two spikes perhaps serving as a warning of what could occur during periods of concern about the overall stability of the financial system.

So in today's show we show we look at another perspective of the silver market, and relate that to where the world stands today, along with the issues facing the markets going forward. To find out more, click to watch the video now!

Arcadia Economics

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