From 85 to 03 silver prices. 5 years later, its tripled!

[mikeofaustin]

From '85 to '03 silver prices. 5 years later, it's tripled!

I'm curious. from 85 to 03, it seems as though silver prices stayed around $4-$5. Now, in as little as 5 years, it's more than tripled. What speculation can you give on this? Is it a bubble? has the U.S. dollar really plunged that much in 5 years? Has inflation caused this? Has the trust in the U.S. dollar fell that much?

What in the world caused this to happen?

 

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[jim4silver]

Re: From '85 to '03 silver prices. 5 years later, it's tripled!

Mike,

It depends on who you ask. Some believe that there exists organized big money forces that are intentionally trying to keep the price of gold and silver down by shorting it on the futures exchanges in amounts that are greater than the actual amount of silver available.

Some might say that since 2001 we have entered a bull commodity market and the price rise is a function of that.

Some might say both examples are correct, and that when the short interests finally give up or are overrun by having to cover, then silver will explode even higher.

The increasing industrial demand probably helps a bit too, but not as much as investment demand by bullion collectors and the silver that is housed as a result of SLV, and other such ETFs.

In any event, as things seem to corrode financially and politically in the world, the price will go up in my opinion over the next year or two at least as investors seek a traditional form of "money" in which to park their fiat dollars.

Jim