Silver Is Massively Underestimated. Should Be $296 An Ounce?

In the case of silver, many experts say it is way undervalued and will outperform gold as an investment. Asset manager Eric Sprott said Monday that one of many reasons the silver price is rising is that demand “is massively underestimated.” Financial writer Harold Goodman recently wrote an excellent silver article for SeekingAlpha.com. Goodman backs up the “undervalued” silver premise by saying, “This next chart (below) is from a brilliant article by Mark J. Lundeen, and shows the price of silver in constant 1920 dollars, but indexed for inflation using U.S. currency in circulation rather than a flawed metric such as CPI.”

“........silver today is priced at only $0.16 in constant, inflation adjusted 1920 dollars, even though it was selling for $1.32 in 1920! To reach its equivalent 1920 price of $1.32 an ounce today, it would have to be priced at $296 an ounce. And unlike 1920, there is a serious shortage of physical silver inventories available for sale today . . . .”