Today, if silver had the same kind of performance as the Dow since around the creation of the Federal Reserve in 1913, then it would have topped out at $225.20 [(29568.6/78.78)*.6). Yet, it only topped out around $50 in 1980 and 2011.
In 1973 silver was in a similar type of position. The Dow had peaked at 1067.2 (in Jan 1973), which represented a X13.55 (1067.2/78.78) since 1913. If silver scored a similar performance, it would have had a peak of $8.128, yet its peak at that time (the beginning of 1973) was only around $2.56, which was achieved in 1968.
Of course silver eventually passed that $8.128-level (in 1979) towards the end of that bull market, and went much further. What was also interesting in 1973, was the fact that silver surpassed its all-time high in the same year that the Dow peaked (touched the all-time high about 5-months after the Dow peak).
It will be interesting to see how long it take for silver this time to touch the all-time high (around $50), and how long before it can match the Dow’s performance since 1913, by touching the $225.20-level.
A comparison to the 70s situation will eventually tell us a lot about the current condition of the monetary system.
Below, is a long-term chart of silver (macrotrends.net) that shows how 2020 and 1973 could be similar for silver:
I have marked two patterns, both starting at a major silver peak (1919 and 1980), with major interest rate peaks following soon after. I have marked them 1 to 6, and shown how they exist in similar context relative to important Dow peaks and crashes.
We are now potentially after the all-time high of the Dow (Feb 2020), just like after the all-time high in January 1973. I have no doubt that silver will surpass the $50 level as well as the $225.20 to match the Dow’s performance since 1913. The important question is: How long will this take?