Silver Bulls: Visualizing the Price of Silver (1960-2020)
Connect with us

Mining

Silver Bulls: Visualizing the Price of Silver

Published

on

Silver Bull Markets

Silver Bulls: Visualizing the Price of Silver

Silver has always shown its value throughout history. From ancient coins to its use as a global currency during the Age of Discovery, silver has circulated the world to become an important financial asset. Its value continues to shine in the era of the modern finance industry.

Today’s infographic comes to us from New Pacific Metals and it takes a look at the bull markets in silver prices and the future of silver.

Silver Bulls: 1967 to Today

The late 1960s marked the beginning of the end for silver as currency, but also the start of its use in protecting and securing wealth.

In the United States, silver certificates were issued by the Treasury until late 1963, when the $1 Federal Reserve Note was released into circulation. After this, the remaining silver certificates were still redeemable for silver, but this practice ended in 1968.

Since then, silver has had several bull markets in which prices have increased—or as some silver aficionados may argue, the relative value of fiat currency has decreased.

 Percentage GainPrice Range (USD)*Duration
Silver Bull #1 (1967-68)49%$12.50 - $18.5813 months
Silver Bull #2 (1971-74)274%$8.45 - $31.5927 months
Silver Bull #3 (1976-80)544%$18.40 - $118.5048 months
Silver Bull #4 (1986-87)40%$12.47 - $17.4812 months
Silver Bull #5 (1993-95)39%$6.47 - $9.0027 months
Silver Bull #6 (2001-11)827%$6.01 - $55.69113 months
Silver Bull #7 (2015-Present?)90%$15.04 - $28.5356 months

Source: MacroTrends
*Inflation-adjusted data using CPI from BLS, LBMA Monthly prices

That said, not all silver bull markets are the same, nor do they necessarily coincide with bull markets in the price of gold.

Performance: Gold vs. Silver

Despite being often referred to as “poor man’s gold”, silver has actually outperformed gold in five of the six previous bull markets for gold and silver.

There are two ways to look at how silver prices performed during these timeframes:

  1. We can compare silver price performance to corresponding peaks and troughs of the gold price
  2. We can also look at silver prices based on its own peaks and troughs, irrespective of gold

Often, gold prices move first with silver prices quickly following—but then, silver can outperform gold on its own timeline.

 Gold PerformanceSilver Performance Silver Performance
Based on gold's peaks and troughsBased on silver's peaks and troughs
Silver Bull #140%-17%100%
Silver Bull #2455%144%432%
Silver Bull #3715%912%977%
Silver Bull #478%27%94%
Silver Bull #528%63%75%
Silver Bull #6:636%904%45%

Source: CPM Group (Nominal data)

More recently, prices of silver have been on an upward trend since 2015 and some would say we are in a new bull market for the precious metal. For however longer, it is anyone’s guess.

The Future of Silver?

While the future price direction of silver is difficult to predict, this doesn’t diminish the increasing importance of silver’s role as a metal in an electrified future.

As you can see in the demand breakdown below, silver is not only precious—it is useful:

Silver Demand (2019)Millions of Ounces
Industrial510.9
...of which Photovoltaics98.7
Photography33.7
Jewelry201.3
Silverware59.8
Net Physical Investment186.1
Total Demand991.8

Source: Silver Institute

While silver’s uses and applications continue to grow, silver remains a safe haven investment from political uncertainty and economic distress—all while being a cheaper and better alternative to gold.

Subscribe to Visual Capitalist
Click for Comments

Mining

Visualizing the New Era of Gold Mining

This infographic highlights the need for new gold mining projects and shows the next generation of America’s gold deposits.

Published

on

gold mining
The following content is sponsored by NOVAGOLD
gold mining

Visualizing the New Era of Gold Mining

Between 2011 and 2020, the number of major gold discoveries fell by 70% relative to 2001-2010. 

The lack of discoveries, alongside stagnating gold production, has cast a shadow of doubt on the future of gold supply. 

This infographic sponsored by Novagold highlights the need for new gold mining projects with a focus on the company’s Donlin Gold project in Alaska.

The Current State of Gold Production

Between 2010 and 2021, gold production increased steadily until 2018, before leveling and falling.

YearGold Production, tonnesYoY % Change
20102,560-
20112,6603.9%
20122,6901.1%
20132,8004.1%
20142,9906.8%
20153,1003.7%
20163,1100.3%
20173,2303.9%
20183,3002.2%
20193,3000.0%
20203,030-8.2%
20213,000-1.0%

Along with a small decrease in gold production from 2020 levels, there were no new major gold discoveries in 2021. Meanwhile, annual demand for the yellow metal increased by 10%, up from 3,651 tonnes to 4,020 tonnes

The fall in production and long-term lack of gold discoveries point towards a possible imbalance in gold supply and demand. This calls for the introduction of new gold development projects that can fill the supply-demand gap in the future. 

Sustaining Supply: Gold For the Future

Jurisdictions play an important role when looking for projects that could sustain gold production well into the future.

From political stability to trustworthy legal systems, the characteristics of a jurisdiction can make or break mining projects. Amid ongoing market uncertainty, political turmoil, and resource nationalism, projects in safe jurisdictions offer a better investment opportunity for investors and mining companies. 

As of 2021, seven of the top 10 mining jurisdictions for investment were located in North America, according to the Fraser Institute. Here’s a look at the top five gold-focused development projects in the region, based on measured and indicated (M&I) gold resources: 

ProjectM&I Gold Resource, million ounces*Grade (grams/tonne)Location
KSM88.4Moz0.51g/tBritish Columbia 🇨🇦
Donlin Gold**39.0Moz2.24g/tAlaska 🇺🇸
Livengood13.6Moz0.60g/tAlaska 🇺🇸
Côté Gold13.6Moz0.96g/tOntario 🇨🇦
Blackwater11.7Moz0.61g/tBritish Columbia 🇨🇦

*Inclusive of mineral reserves. **See cautionary statement regarding Donlin Gold’s mineral reserves and resources.

Located in Alaska, one of the world’s safest mining jurisdictions, Novagold’s Donlin Gold project has the highest average grade of gold among these major projects. For every tonne of ore, Donlin Gold offers 2.24 grams of gold, which is more than twice the global average grade of 1.03g/t. 

Additionally, Donlin Gold is the second-largest gold-focused development project in the Americas, with over 39 million ounces of gold in M&I resources inclusive of reserves. 

Novagold is focused on the Donlin Gold project in equal partnership with Barrick Gold. Click here to learn more now

Subscribe to Visual Capitalist
Click for Comments

You may also like

Subscribe

Continue Reading

Subscribe

Popular