Loading ...Note that the ratio, or price of silver, in terms of US dollars in existence, is indeed at its all-time 100-year low.
In 1980, the all-time high was 0.361, whereas the ratio is currently at around 0.004. The US monetary base is currently around 3 304 billion dollars (or 3.304 trillion). Therefore, if silver was today at its 1980 value, relative to the monetary base, it would be around $1 193 (3304*0.361).
So, in terms of US dollars in existence, silver is trading at 1.24% (14.84/1193) of its 1980 high – it is the bargain of the century.
Silver Long-Term Channeling
On the chart, the first phase of the silver bull market was from 1993 to the end of 2001, and the second phase is potentially from 2001 to the end of 2015.
It appears that there is a similarity between the two phases. I have drawn some lines, and marked some patterns to show how the two phases are interwoven and could be similar.
The first phase is marked 1 to 3, in black, and the second 1 to 3, in blue. Both of the phases appear to occur within a broadening channel, from which they both broke down (out of the channel), after point 2.
Outside of the channel there was a triangle-type consolidation. The first phase managed to get back inside the broadening channel after breaking out of the triangle-type consolidation. If the current pattern follows, then we could have a big rally, after breaking out of the triangle consolidation.
Based on this comparison, buying silver now is like buying silver back in 2003 when it was under $5 per ounce.