Why Silver Is Not in a Bubble

A look at a wide range of valuation metrics clearly shows that silver is not in a bubble, despite its recent large gains.

Amid silver’s recent surge following a long period of stagnation, a wave of articles and commentaries have emerged calling its rise an unsustainable bubble that's about to burst and burn investors. It’s worth noting that nearly all of those now calling silver a bubble failed to foresee its bull market years ago, unlike myself. In my view, they’re now heckling from the cheap seats, which reeks of sour grapes. I firmly disagree with their assessment, and in this report, I will prove that silver is not in a bubble by examining a wide range of valuation metrics.

Let’s start with a look at silver’s performance over the past few years. The current bullish cycle in silver began when it bottomed in September 2022, and it has since surged 379%.

While some argue for different starting points to silver’s bull market, I believe September 2022 is the most accurate. This view is supported not only by silver’s price in dollar terms, but also by other valuation metrics I use, as well as the timing of gold’s bottom. I explained my reasoning in this report.