Through A Glass, Clearly

Inflation makes it hard to judge the value of everything. Because the measuring unit, the dollar, is always dwindling, how can you know what a price 10 or 20 years ago means? It's like shooting skeet off the back of a bass boat in a high storm.

To clear my mind, I went back and adjusted silver and gold prices for inflation. Observe:

In 1980 GOLD hit a high of $2,168.65, adjusted to 2005 dollars. The secondary peak on October 10, 1980 equalled $1,777.76 in 2005 dollars. Even the December 1987 peak equalled $871.12. All that makes the recent peak at $527 look pretty pale, not to mention my bull market target of $1,250.00.

In inflation adjusted 2005 dollars SILVER hit a 1980 high at $127.87; hit $27.63 in February 1983, and $15.11 in May, 1987. Do y'all understand now why I'm so optimistic on silver's future -- and why my $80 bull market target is really conservative?

-- Franklin Sanders

© 2006, reprinted with permission from The Moneychanger for December, 2005. Franklin Sanders lives on a farm in Middle Tennessee by choice, deals in physical gold & silver, and has been writing and publishing The Moneychanger for nearly 26 years. In 1993 he wrote Silver Bonanza for Jim Blanchard. Last year he published "Why Silver Will Outperform Gold 400% and & The Professional Trading Secrets That Will Make the Most of Your Silver & Gold Investments," still available at www.the-moneychanger.com/order/publications.phtml.

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