Inflation-Adjusted Silver Price Charts
(These will soon be outdated!)
Silver Stock Report
by Jason Hommel, May 18, 2008
As you may know, I'm not big on charts. I
don't like charts, since most charts don't tell the full story of how much money
they have printed up, and will continue to print up in the future.
But inflation-adjusted charts can give a more accurate picture than
nominal dollar charts. Furthermore, since inflation is escalating
rapidly, any charts made end up having to be re-adjusted as inflation
continues. However, a very brilliant programmer, named Shelby Moore,
who programmed www.miningpedia.com
to surpass my specifications, has figured out a way to use google's api
to create continuously adjusted inflation adjusted charts (these are not
those, not yet).
nominal chart is just the numbers, and shows that silver hit a high
of $50/oz. in 1980. But that's not really accurate, since the
dollar is not an accurate measure. Since 1980, when M3 was $1.8
trillion, there has been a lot of inflation, and there's two ways to
adjust for that inflation.
The first way to adjust for inflation is through
the government's CPI index, or "Consumer Price Index" which is the "official" inflation
rate, but this excludes things like housing, food, and energy, which
"nobody needs", and it used hedonic adjustments, and other sorts of lies,
and thus severely undercounts inflation. That's the first chart that shows silver
peaked at $128/oz. in 1980 as measured in 2008 CPI
Another way to adjust is by
looking at M3, which shows a measure of money creation inflation,
which the government stopped reporting in the spring of 2006 when M3 was
$10.3 trillion. A private company continues to keep track, and now
says that M3 is at $14 trillion, and increasing by about
20% per year now. That's the second, SGS chart that shows that
silve peaked at $365/oz. in 1980, as measured in 2008 SGS
The other important
adjustment that charts need is that they need to be log adjusted, rather
than linear. This way, they show similar rates of change in the
slope of the rises, so that you can compare growth rates.
but I believe we can expect Shelby to make
even better ones soon.
charts show a better picture than I've seen elsewhere.
Silver is cheap, and has hardly moved up yet at all! Don't even
think about taking profits yet.
If you can't see the charts for
some reason, visit
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You can buy silver in
lots of 100-500 oz. at my auctions at www.seekbullion.com
Auctions end M-Th, Sat, At 7PM Pacific, but you can place bids anytime, 24/7.
Wires only. USA Shipping only.
You can also buy silver at www.momsilvershop.com
ship overseas, and also in lots of more or less than 100
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