by Mukarji, Silver-coin-investor:
The price of silver has historically been very low during the whole 20th century. In 1901 it was $0.6/oz and in 1999 it was $5.2/oz (yearly average). The only years it has been above $7/oz was 1979-1983. When Hunt brothers tried to corner the silver market it went as high as $50 in Jan 1980.
If we try to ascertain the inflation adjusted price of silver from the recent past, lets say 1971 onward, it does not come anywhere close to the 1980 peak.
The price of silver in 1971 was $1.4/oz and if we apply inflation rate of 3%-8% over the period, the inflation adjusted price will range between $5 and $36 (inflation 3% silver $5, 4% $7, 5% $11, 6% $16, 7% $24, 8% $36). A house bought in 1971 for $20k which now cost $230k, will represent 6% annual inflation ($20k in 1971 with 6% CAGR would be $230k in 2013). I have taken 1971 as base year, because it is prior to the oil crisis of the 70s (agreed, one can argue why 1971 and not some other year).