George Soros identifies asset bubbles by their “parabolic move”.

By this yardstick, silver is trading near bubble territory.  The following chart compares the 5-year performance of ETFs of silver vs. gold, precious metal and commodity index.

(click to enlarge)

So how high is today’s silver price in historical perspective? According to WSJ, silver closed last Thursday at $47.52 a troy ounce, up $1.562, or 3.4%, and just short of the $48.70 record settlement reached in 1980. Adjusted for inflation, that record price would be equivalent to $139.88 today.  After skyrocketing 84% in 2010, silver prices have jumped another 54% so far this year. In comparison, gold is up 7.7%, hitting a new record of $1,530.80 an ounce on Thursday.

 

Read part 1 of silver story here.