I heard an interesting argument about price inflation. It goes like this: When the price of silver went over $40 an ounce back in the 2008 timeframe, the reason was that with all the money the fed was pumping into the economy, price inflation was expected. But it all went into the stock market and there was no price inflation to speak of. Silver crashed.
But this time they are giving it directly to the “little people”. some making more on unemployment than they made at their jobs. They spend the money. That may be one reason lumber is so high right now. It also may explain the bump in silver and gold.
And add the destruction of the world’s economy via the lockdowns. It does look like we’re living in interesting times.
BTW, Try to buy silver right now. Good luck...
https://www.jmbullion.com/silver/silver-coins/american-silver-eagles/all-american-silver-eagles/
I just bought 20 ASE’s yesterday and will purchase another 20 on Monday. There are plenty of opportunities to purchase physical silver for those who bother to look.
In 1964, the last year the U.S. minted 90% silver quarters, you could buy a gallon of gasoline with a quarter.
Current spot price of 1oz silver is $27.15. ($27.15 x .9 = $24.435) $24.435/4 = ~$6.11. Or enough to buy ~ 2.5 gallons of gasoline.
That aside, there's supposedly a "short squeeze" on silver as there are more certificates than bullion. Folks on Zerohedge, Reddit, and other social media platforms have been discussing this.
The basic premise is to buy physical bullion, and or silver shares ($SLV). Hedge funds shorting silver will have to buy to cover the short, thus driving up the price (and the value of "retail investors'" holdings).
The lack of physical bullion, and volume of people requesting physical delivery, adds to the scarcity, and increases the difficulty the hedge funds will have covering the shorts - further accelerating the price and the "value" of retail's holdings.