Silver may be experiencing a pause before the big break. After its streak in the early 1970s, silver took three and a half years to start its next run and five years to reach its next peak. The viewer acknowledges and accepts that SD Bullion does not guarantee the accuracy, timeliness or integrity of the price data shown here. When the illusion of money (value) is exposed as what it is (worthless paper or digits), people will demand real money (value), such as silver and gold.
This is mainly because silver has been completely demonetized, while gold is still part of the current system (think central bank gold reserves). The cyclical silver bear market is serving its purpose, estimates Jordan Roy-Byrne of The Daily Gold. Austria, France and West Germany continued to use silver in some circulating currencies until the late 1970s. Fixed silver prices represent the compound prices reached by several commercial banks and brokerage firms in the OTC silver bullion markets.
They have to continue printing money for years and will be an important catalyst for gold and silver when bond markets go the other way. By 1970, silver coins were almost completely demonetized, with 90% of silver dimes and 90% of twenty-five-cent silver coins almost completely removed from mass circulation. The increase in silver prices had some effect on limiting its use, although the main factor was the slowdown in general economic growth and the shift of the economy away from manufacturing products that used silver. Today, quality gold and silver miners (mostly not in the GDX or GDX) are trading well below their highs and at their lowest valuations for quite some time.
By the early 1970s, most of the 90% silver coins had been held and preserved by longtime collectors and price speculators, since their merger value was higher than their nominal legal tender value then and, of course, until today. Between 1968 and 1971, the price of silver declined mainly due to the economic recession in the United States and the simultaneous attempt of the United States government to stabilize the price of silver during this same period of time.