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Critical Price Juncture For Silver

You can get longer period graphs by going to our site and clicking on commodities, and click on Moore and then click on currencies and or commodities to investigate then back to 1976. We also like to go back to the 1930's when talking about commodities. The high for copper in 1932 was 8 cents a pound and the low was 4 cents a pound.

Now copper brings about $3.50 per pound. It is up almost 100 times from $0.04 or 50 times from the 1932 high of $0.08. Check up current prices related to 1932 prices and they will be up 50 to 100 times. Try candy bars, tools, houses, cars, ears of corn, and etc. The point is that price increases of 50 to 100 times are normal from the 1930's to 2008.

Another interesting comparison is the 1984 to 2002 time period during which commodities prices were level for gold, silver, copper, and other commodities.

Then, all at once all commodities all took off and ran up in almost equal proportional increases. Now one has to explain the long level price period and the subsequent sudden and uniform price gain ratios. Note that foreign (to USA) currencies have also had big run ups in the 2001 to 2008 period.

What happened to cause the run ups in 2001 to 2008?

We believe the 20 years of no commodity price increases relative to US dollars were caused by the competition of vendors to get their hands on $US balances which were appreciating in the form of bond prices and stock prices as USA interest rates fell from 1980 to 2000. To see this take a look by clicking in interest rates and then 5 year bond rates on our site.

All being said, we see no problem to commodities up 50 times from 1932 since everything else is up that much.