Introduction
In the realm of silver prices, historical milestones are etched into the financial landscape, each telling a unique story of economic shifts and market dynamics. This exploration delves into key junctures, from the pinnacle of silver values to intriguing market events that have left an indelible mark.
1. Record Silver Prices From London LBMA Fix
The annals of silver pricing history highlight a watershed moment on January 18, 1980, when the London LBMA Fix recorded an all-time high of $49.45 (£21.65) per troy ounce. This surge was propelled by the strategic moves of Nelson Bunker Hunt, who cornered the market, leaving a lasting impact on silver valuation.
2. April 2011: A Resurgence in Sterling and Euros
Fast-forward to April 2011, and silver once again commanded attention. Sterling and euros experienced new peaks, with silver in pounds reaching £29.29 on April 28, 2011, marking a resurgence that surpassed the 1980 pinnacle. Meanwhile, in US dollars, silver flirted with its historical zenith, reaching an impressive 98% of its all-time high.
3. March 2011: The Silver Surge Continues
March 7, 2011, witnessed silver scaling new heights. While in US dollars, it was at 70% of its peak, in pounds sterling, a fresh all-time high was achieved. The subsequent day witnessed silver fixing at new peaks in sterling and euros, underlining the persistent upward trajectory.
4. December 2010 - Near Highs in Sterling
Entering December 2010, silver marked its presence with new 30-year highs. In pounds sterling, it reached 87% of its all-time high, showcasing the enduring strength of silver. This resurgence was particularly notable as it followed a period where silver in US dollars remained at 60% of its peak.
5. The Bunker Hunt Bubble: Foresight and Fallout
The Bunker Hunt saga, originating in the 1970s, stands as a testament to strategic foresight in silver investment. With the family amassing approximately 100 million ounces, their profits were substantial but eventually marred by market manipulations. The Hunts faced significant losses as the rules of the game changed, underscoring the complexities of the silver market.
6. Silver Thursday 27th March 1980: Panic in the Markets
Silver Thursday, on March 27, 1980, saw a sharp drop in silver prices, triggering panic in commodity and futures markets. The London Silver Fixing prices during this tumultuous period reflected a volatile landscape.
7. Recent Low Silver Price: A Dip in 1991
After the historic high of 1980, silver prices witnessed a tumultuous decline, hitting a nadir on February 25, 1991, at $3.5475 per troy ounce. This phase marked a stark contrast to the record-breaking heights of the past.
8. Gold Silver Price Ratio: Ancient Ratios and Modern Perspectives
Exploring the historical gold-silver ratio, we traverse over 2,500 years, from ancient Greece to the peaks of the 1930s and 1991. The ratio, once at 98:1, is examined in light of its relevance in contemporary markets, offering insights into precious metal dynamics.
In conclusion, the tapestry of silver prices weaves a narrative of highs, lows, and the intricate dance of market forces. From the exploits of the Bunker Hunt family to the market-shaking Silver Thursday, understanding these historical junctures provides valuable context for navigating the dynamic world of silver investments.
