Silver 2008 Prices vs Today
Yesterday I wrote about the CME Group and the circuit breakers they put in place for Gold/Silver prices back in 2014. Today I want to show you why I think Silver has much more price potential.
Dollar Index
This chart shows the dollar index from 2006-2013. You can see where it was in free fall until they started QE1 then the next bounce was QE2. Now let's take a look at what silver did during the same period.
Silver Price
This chart shows silver over the same period from 2006-2013. The average price of silver was around $14 from 06-10. Then it started it's historic run up to the $50 range.
During this silver run the dollar index never made it over 90.
Now let's fast forward to today and take a look.
Current Conditions
Today we see the silver price in nearly the identical place it was back in 06. The big difference here is the Dollar index is up over 100! That leaves a lot of room to drop before it catches the attention of anyone. This could be huge for the PM prices.
On the below left you see the Dollar index and the right side is the silver price.
Charts from 2006-Present
I'm not going to go into much detail about these charts. Just to give you a better idea of what the overall changes looked like. There is a pretty big gap between the dollar low and it's current valuation. While silver is sitting near it's low already. Again the left is the Dollar and right is Silver.
I'm running low on time tonight but will talk more about it in my next post. If you like making charts be sure to check out Tradingview. It's FREE and has some great features to play with.
I hope you enjoyed this article and learned something new. Keep an eye out for more coming soon.
