Silver Bulls: Visualizing the Price of Silver

Silver Bull Markets

Silver Bulls: Visualizing the Price of Silver

Silver has always shown its value throughout history. From ancient coins to its use as a global currency during the Age of Discovery, silver has circulated the world to become an important financial asset. Its value continues to shine in the era of the modern finance industry.

Today’s infographic comes to us from New Pacific Metals and it takes a look at the bull markets in silver prices and the future of silver.

Silver Bulls: 1967 to Today

The late 1960s marked the beginning of the end for silver as currency, but also the start of its use in protecting and securing wealth.

In the United States, silver certificates were issued by the Treasury until late 1963, when the $1 Federal Reserve Note was released into circulation. After this, the remaining silver certificates were still redeemable for silver, but this practice ended in 1968.

Since then, silver has had several bull markets in which prices have increased—or as some silver aficionados may argue, the relative value of fiat currency has decreased.

  Percentage Gain Price Range (USD)* Duration
Silver Bull #1 (1967-68) 49% $12.50 – $18.58 13 months
Silver Bull #2 (1971-74) 274% $8.45 – $31.59 27 months
Silver Bull #3 (1976-80) 544% $18.40 – $118.50 48 months
Silver Bull #4 (1986-87) 40% $12.47 – $17.48 12 months
Silver Bull #5 (1993-95) 39% $6.47 – $9.00 27 months
Silver Bull #6 (2001-11) 827% $6.01 – $55.69 113 months
Silver Bull #7 (2015-Present?) 90% $15.04 – $28.53 56 months
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Source: MacroTrends
*Inflation-adjusted data using CPI from BLS, LBMA Monthly prices

That said, not all silver bull markets are the same, nor do they necessarily coincide with bull markets in the price of gold.

Performance: Gold vs. Silver

Despite being often referred to as “poor man’s gold”, silver has actually outperformed gold in five of the six previous bull markets for gold and silver.

There are two ways to look at how silver prices performed during these timeframes:

  1. We can compare silver price performance to corresponding peaks and troughs of the gold price
  2. We can also look at silver prices based on its own peaks and troughs, irrespective of gold

Often, gold prices move first with silver prices quickly following—but then, silver can outperform gold on its own timeline.

  Gold Performance Silver Performance Silver Performance
Based on gold’s peaks and troughs Based on silver’s peaks and troughs
Silver Bull #1 40% -17% 100%
Silver Bull #2 455% 144% 432%
Silver Bull #3 715% 912% 977%
Silver Bull #4 78% 27% 94%
Silver Bull #5 28% 63% 75%
Silver Bull #6: 636% 904% 45%

Source: CPM Group (Nominal data)

More recently, prices of silver have been on an upward trend since 2015 and some would say we are in a new bull market for the precious metal. For however longer, it is anyone’s guess.

The Future of Silver?

While the future price direction of silver is difficult to predict, this doesn’t diminish the increasing importance of silver’s role as a metal in an electrified future.

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As you can see in the demand breakdown below, silver is not only precious—it is useful:

Silver Demand (2019) Millions of Ounces
Industrial 510.9
…of which Photovoltaics 98.7
Photography 33.7
Jewelery 201.3
Silverware 59.8
Net Physical Investment 186.1
Total Demand 991.8

Source: Silver Institute

While silver’s uses and applications continue to grow, silver remains a safe haven investment from political uncertainty and economic distress—all while being a cheaper and better alternative to gold.

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The post Silver Bulls: Visualizing the Price of Silver appeared first on Visual Capitalist.

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