Tuesday, November 24, 2020

Tag: Here’s What “Stupid Cheap” Looks Like: The Inflation-Adjusted Silver Price

Here’s What “Stupid Cheap” Looks Like: The Inflation-Adjusted Silver Price

by Jeff Clark, GoldSilver:
A lot of readers liked the inflation-adjusted gold price chart we highlighted last month. It showed how dramatically undervalued it is, as well as how high it could reach when using the 1980 inflation formula.

Many of you asked to see the same chart in silver. Well, we aim to please. And what you’ll see below shows that silver’s undervaluation is even greater than gold’s.

Why We Must Adjust For Inflation

When trying to put the price of a particular asset into perspective, you have to adjust it for inflation. If you don’t, the long-term view is distorted and can lead to erroneous conclusions. It’d be akin to preparing your income taxes using 1980 forms.