In Silver vs. the Dow we showed the volatile nature of silver vs. the Dow Jones Industrial Average. Silver is a spike and dive commodity and its performance against the DJIA over the past few decades shows years of severe losses against the Dow and years of spectacular gains.
Silver’s performance against the dollar has been a similar story of surges and crashes. Silver does not have the same track record of gold in providing a consistent store of value.
The advantage of silver over gold is that while it crashes harder in bear markets, it soars higher in bull markets. This is due in part because the silver market is much smaller than the gold market and has a more even mix of industrial and investment demand.
The price of silver has been falling the past two years despite the supply/demand dynamic being in deficit during the same time period.
Here are charts that show silver’s performance againt the dollar during six month, two, five, ten, twenty and thirty year periods. You will note periods of extreme dollar strength vs. silver and vice versa.
Silver vs. the Dollar Charts
Silver vs. the Dollar – Six Months
From April to September 2014, silver was stronger relative to the dollar. The dollar has strengthened in recent months, while silver has crashed and the dollar is now stronger relative to silver over the most recent six month period.
America’s Most Popular Silver Coin: The Sold Out American Silver Eagle
Silver vs. the Dollar – Two Years
Silver’s steady decline since the beginning of 2012 and recent collapse in price and the dollar’s recent surge has left the dollar stronger relative to silver over the past two years.
Canada’s Most Popular Silver Coin
Silver vs. the Dollar Five Years
Silver was stronger relative to the dollar during most of 2011 when the price of silver reached $50 an ounce. A steady decline in the price of silver and recent surge in the value of the dollar, bring the dollar closer to silver, but silver still has the edge for the period of 2009-2014.
Europe and Japan’s Most Popular Silver Coin
Silver vs. the Dollar – Ten Years
The dollar is the loser vs. silver during the period of 2004-2014. During the past ten years there have been times when the value of silver was far greater relative to the dollar. Some of those gains have been erased in the past few years.
China’s Most Popular Silver Coin
Silver vs. the Dollar – Twenty Years
Silver holds the edge over the dollar over the past twenty years. The chart shows that the dollar’s recent strength masks an overall large decline the past twenty years. It also reflects silver’s rise from the single dollar an ounce range during the 1990’s to consistent double digit prices per ounce beginning in the mid 2000’s.
Silver vs. the Dollar – Thirty Years
Silver is the winner vs. the dollar over the past thirty years, reflecting a long term trend of higher silver prices and a devalued dollar.
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