Silver Price - Inflation Adjusted to CPI and "Real" Inflation Rate

In 1980 Silver reached a record high price of $48 per ounce. In order to know what the value of the 1980 $48 was in today's dollars we need to factor-in the accumulation rate to arrive at today's true value of the 1980 $48.


1. If we adjust the 1980 US dollar value using the government reported CPI (inflation) number, $48 in 1980 is equivalent to $139 today. Since the current price of Silver is only $30 per ounce, in order to just match the government CPI inflation adjusted 1980 silver price, silver would have to go up another $109 per ounce.

• Note that the government CPI number is extremely flawed as it grossly understate the real world inflation rate.

2. For a real world situation, it is very important for us to use the real world "true" inflation rate, and the best place to get that number is from Shadow Stats. Using Shadow Stat's inflation number, which is the "real' number, Silver price high in 1980 at $48 per ounce is equivalent to $447 in today's inflation adjusted dollars value.

Since the current price of Silver is only $30 per ounce, in order to just match the 1980 high price in silver, silver would have to go up another $417 per ounce..


*** Since Silver Bull market tends to go between 15 to 18 years, we still have another 5 to 8 years left in the current bull market. If past history repeats, which is normally the case, we would have between 5 to 8 years left for price to travel at least $417.00.


*** If the US dollar goes into hyperinflation, which is very likely the case, and the global financial system collapse as a result, silver price can go much much higher that $447 per ounce.