Silver is better than gold but nickel is much better than both for hedging against inflation

I just calculated the real (adjusted for inflation) long-term average value of silver since 1969. I eliminated 1980 because the Hunt Brothers tried to corner the market in silver. That caused it to hit an all-time record price of $50.35 on March 2, 1980.

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That is not going to happen again because the Comex exchange changed their rules to discourage it. The brothers were also found civilly liable and had to compensate for conspiracy against another silver trader, went bankrupt, and lost a billion dollars. So that was a one-off anomaly.

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So the average price over that period in 2024 dollars was $20.18. The average price in February 2024 is $23.27. That is much closer to the long term average than the gold price which in February 2024 was about double its long term real average price. In other words, silver is a far more attractive hedge today than gold based on long term average price. There are also other reasons why silver is a better inflation hedge than gold.

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You buy when the price is below the long-term average. It is not there now, but it is closer to that average than gold is to its average.

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Here are the numbers for each year. The middle column is the price that year. The right column is the middle column converted to February 2024 dollars using the BLS CPI calculator.

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Year Average 2024

Closing Price

2024 $23.27 $23.41

2023 $23.40 $24.27

2022 $21.76 $24.02

2021 $25.14 $29.82

2020 $20.69 $24.89

2019 $16.22 $20.00

2018 $15.71 $19.67

2017 $17.07 $21.81

2016 $17.17 $22.49

2015 $15.66 $20.79

2014 $19.07 $25.30

2013 $23.79 $32.06

2012 $31.15 $42.65

2011 $35.12 $49.49

2010 $20.19 $28.91

2009 $14.67 $21.56

2008 $14.99 $22.04

2007 $13.38 $20.51

2006 $11.55 $18.07

2005 $7.31 $11.90

2004 $6.66 $11.16

2003 $4.88 $8.33

2002 $4.60 $8.06

2001 $4.37 $7.74

2000 $4.95 $9.10

1999 $5.22 $9.86

1998 $5.54 $10.64

1997 $4.90 $9.56

1996 $5.20 $10.45

1995 $5.20 $10.74

1994 $5.29 $11.23

1993 $4.31 $9.38

1992 $3.95 $8.88

1991 $4.06 $9.36

1990 $4.83 $11.77

1989 $5.50 $14.09

1988 $6.53 $17.51

1987 $7.02 $19.59

1986 $5.47 $15.49

1985 $6.13 $18.03

1984 $8.15 $24.82

1983 $11.42 $36.24

1982 $7.92 $23.69

1981 $10.49 $37.42

1979 $11.07 $50.30

1978 $5.42 $23.04

1977 $4.64 $24.61

1976 $4.35 $24.28

1975 $4.43 $26.39

1974 $4.67 $31.10

1973 $2.55 $18.58

1972 $1.68 $12.68

1971 $1.54 $12.01

1970 $1.77 $14.53

1969 $1.80 $15.69

Average $20.18