Your points are well taken, but market has priced them in.
Silver is only 10% off a multi year low. I keep a (yearly) chart of silver adjusted for inflation, and it's lower now than at any point in history (as least as far as my chart goes back, which is 1966).
Incidentally, I also plot the yearly Dow in 1966 dollars (the year the post war bull effectively ended). Guess how long it took the Dow to recover the 1966 high (in 1966 dollars) and what the Dow would have been on Dec. 31, 2001 (answers below).
When I checked your posts, I thought you were baiting me, and am glad to see you were not necessarily. Certainly, there are bearish influences on silver prices, but I still think it represents value, and there isn't a lot of that around right now. What there is is a lot of M3 money pumped into the housing market buoying up consumer spending as people refinance at higher prices. Unsustainable.
I see the house price inflation spilling over into other areas eventually. We'll see.
CD
(Answers to above: Dow 1000 again in 1993 (27 years to recover!!!) and without inflation, Dow closes at 1870 on Dec. 31, 2001.) |
