Silver – A Long-Term Perspective

by Gary Christenson
Deviant Investor

We all know silver is volatile. When gold rallies, silver usually rallies faster and farther, particularly after the rally has been well established.

Volatility is not a reason to avoid silver. Instead, now is a time to continue stacking. Yes, silver almost certainly will correct many times, but examine the big picture.

Over the past 50 years prices for stocks, silver, gold, crude oil, health care, and presidential elections have increased exponentially, mainly due to massive increases in debt (see graph below) and devaluations of currencies. Expect exponential price increases to continue.

Over 50 years the Dow Jones Industrial Average has averaged about 700 times larger than the price of silver. Examine the log-scale graph (below) of 700 times the price of silver plus the DJIA.

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