Buying Mania Will Push Silver Price Much Higher As Dow Jones-Silver Ratio Falls Back Towards 50/1
Steve St. Angelo
SilverSeek.com
May 5, 2017
Just like the current market frenzy pushing Bitcoin to new all-time highs, the same sort of buying mania will also push the silver price to new highs. Even though the silver price and precious metals sentiment have fallen considerably, the market has no clue just how undervalued the shinny metal truly is.
Very few investors realize that the Dow Jones-Silver ratio back in 1981 was 50/1. Which means, 50 ounces of silver would buy the Dow Jones Index 46 years ago. Today, the Dow Jones-Silver ratio is trading above a staggering 1,200/1. Thus, it takes 1,200 ounces of silver to by the Dow Jones Index today as the ratio is nearly 25 times higher today than it was in 1981.
Of course, a large percentage of the silver price increase during the 1970’s was due to the Hunt Brothers acquiring a lot of the metal during the decade. However, a great deal of institutions came behind the Hunts and also bought silver during the latter part of the 1970’s. Lastly, we had the typical “Brain dead” public come in and buy at the top. It is so unfortunate that the public doesn’t understand long term investing or wealth preservation. Instead, they buy as much stuff on credit today and then worry about paying for it all tomorrow.
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