It's hard not to get a bit nostalgic about silver prices.
I find myself reminiscing about April 2011 when the white metal ended the month at a sterling $48.70 an ounce after hitting an all-time intraday high of $49.51. That record surpassed the previous high of $49.45 set three decades earlier when the Texan Hunt brothers set out to corner the silver market.
Since the 2011 peak, the S&P has roared higher by some 50%, while the value of silver has tumbled 53%. That's not nearly as bad as the drop silver experienced between its Hunt brothers induced high on Jan 1, 1980 through its low on June 21, 1982, when silver fell a devastating 90%.
Those declines are a reminder of just how volatile the metal's price can be. But with great risk comes great reward, and we see record-breaking gains ahead…
Silver Prices "Like Gold on Steroids"
With the Dow Jones Industrial Average and the Standard & Poor's 500 Index continuing to log fresh milestones, silver investors feel left out.
Yet, as I longingly look at my silver collection, beyond the pining I see profound potential.
You see, silver doesn't typically move in step with equity markets.
In fact, it often moves paces ahead. Silver has outperformed the S&P on an annual basis 43% of the time, Ken Winans of Winans International, a California-based registered investment firm, recently told USA Today.
Moreover, because silver has a high beta, meaning it moves disproportionally compared to other metals in both bull and bear markets, it's frequently the favored metal because of its stellar possibilities.
While silver often trades in tandem with gold, precious metal experts like our resources expert Peter Krauth like to best describe the white metal as "gold on steroids."
Why Silver Prices Will Shine
The pullback in silver prices has provided a value-backed opportunity for savvy investors. Here's why.
Money printing by central banks, and the relationship with gold and silver, has broken down over the past year-and-a-half, with the metals trading sideways at best.
But that zigzag trend can only be temporary.