by Jeff Clark, Senior Analyst, GoldSilver.com
Silver outperformed gold last year, and has so far this year, too. The gold-silver ratio has fallen from 123 last March to 64 today. Silver’s 12-month performance is also strong, up about 60% since last February 28.
And yet, silver remains one of the most undervalued investments that can be bought today.
Regardless of what asset class you compare it to, silver offers better value to investors right now than almost anything else.
That’s because it is one of a few assets that are still priced below their 1980 high. An asset should obviously appreciate in price over a 41-year period—especially one with monetary qualities—but at this moment in time, silver has not.
The following charts will show just how undervalued silver truly is…
Silver vs. the Investment World
The following tables list each asset’s highest price in 1980, the high so far in 2021, and then the percent gain or loss over this 41 year period.
Let’s start with the metals. Check out how much each metal has gained since 1980—except silver.
All metals are up double or triple digits (and some quadruple digits). But not silver; it remains 43% below its high of 41 years ago.
We’re just getting started…
Here’s silver compared to food commodities.
Most are above their 1980 high. Coffee is lower but not as much as silver. Only sugar has risen less than silver since 1980.
Here’s a comparison of silver to lumber and oil.
Lumber prices have risen triple digits, heating oil has almost doubled. Only crude is further below its 1980 high than silver.
And then there’s the stock and real estate markets…
The S&P 500 has risen 27 times, the Dow almost 10 times, and home prices 4 times. But silver remains 43% below its 1980 high.
The most dramatic comparison is to Bitcoin.
Since pizza day—when two pizzas were bought with 10,000 bitcoin—it has risen nearly 1.4 billion percent. It is the largest rise of any asset in history, including the Tulip mania.
By the way, I’ll mention that we’ve had more than a couple bitcoin holders cash in some of their big gains on cryptos and buy undervalued silver (and gold). They’ve already started their own wealth transfer—you might consider following in their footsteps with a portion of your gains, too, if you’re sitting on big profits in a crypto.
The message to all this is clear:
- Silver is the most undervalued asset an investor can buy right now.
Combine that fact with all the forces that can propel it higher and buying silver now could offer some of the biggest gains of any investment over the next few years.
About Jeff Clark
An active investor with a love of writing, Jeff Clark is a globally recognized authority on precious metals. As the son of an award-winning gold panner, with family-owned mining claims in California, Arizona, and Nevada, Jeff has deep roots in the industry. Jeff regularly speaks at precious metals conferences, serves on the board at Strategic Wealth Preservation in Grand Cayman, and provides exclusive analysis and market commentary to GoldSilver customers. Follow Jeff on Twitter @TheGoldAdvisor