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Silver Prices During The Great Depression

Jun. 07, 2020 12:13 PM ET5 Comments
Brent Hecht profile picture
Brent Hecht


  • This article explores the possibility that silver prices may be entering a similar period to the 1930s Great Depression Era.
  • Various silver price charts reveal that the past decade of silver prices have behaved similar to the decade leading up to the Great Depression.
  • A brief discussion on some of the fundamental factors and events centered around currency, similar to now, that were taking place back then.

Silver Prices During the Great Depression

I recently wrote an article about my macro view of silver prices that was informed by technicals and some of the work done by Crescat Capital. In it, I explored the bull case for silver but tried to be equally as respectful of the bear case. I lean bullish at the moment on silver, and for this article, I thought it would be useful to review historical silver prices during the Great Depression era as this is something I left out of my previous article.

Let me be the first to say I’m not big on stock market chart analogs. When I see others use analogs, I usually don’t get very far before I stop reading. So if you are one of those people, I understand. However, I am also a firm believer that history rhymes, although not always perfectly. My goal for this article is for people(including myself) to prepare for a wide range of possible outcomes in the short term, with a firm understanding of the probability of the longer-term(3 to 4 years) outcome.

Since I believe history rhymes, let me say that I believe what we are living through today is the modern-day equivalent of the depression era of 1929 to 1932, even despite the most recent jobs report appearing very positive. Without going into details on why(besides the obvious economic conditions) I think it’s appropriate to understand silver price behavior in this time period.

Without belaboring the point further, here’s a chart of silver prices brought to us by macrotrends.net. It showcases silver prices from 1915 to 1945. Notice how the “Roaring 20s” reveal a continuous price decline in the price of silver. Sound familiar to the decade we just went through for silver prices? I think so. Then once 1932 was reached, which was the bottom

This article was written by

Brent Hecht profile picture
I focus on a wide variety of stocks but I prefer to write about oil and gas companies at this time. That said, if I think there is a reason to write about it, then I enjoy studying new companies and learning about new opportunities. I am a graduate of Texas Christian University where I have obtained both my bachelors and my MBA. I am also a published author. You can find my book on Amazon called "Bitcoin, Christianity and History." I will warn you that I've been told it is NOT light reading. However, it will give you some insight behind my logic and methodology. They won't teach you this in college.You can also learn something about my methods at my website. I have free and subscriber only research articles there. However, at this moment, the website is still being built and accumulating research.Thanks for reading my articles!

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Comments (5)

I have a question please for anyone to answer. How does one redeem silver in a depression? Is it a matter of selling to the market and did the markets continue in the early days of the great depression or are there other mechanisms?
If we have hyperinflation this year (2021) what investments other than silver & gold would be suggested other than vegetable garden, guns & ammo etc.??
Great analysis of silver. I like the 1929 to 1932 analogy which makes me believe that it is still a valid comparison. Assuming the next leg down in the equity markets begins this fall and extends into early 2021, one might suppose that the gold mining stocks and silver will be pulled down with the overall equity markets; they may even double bottom at the March 2020 lows, maybe even slightly lower. This could all happen as gold bullion goes sideways or continues to rally.
Bigmac777 profile picture
Got a hunch
Adding a bunch!
razztraffic profile picture
Good discussion. Well presented article.
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