Turk compares silver's historical price with Apple

[Unobtanium]

Interesting comparison. One thing I noticed though that is strange is that he plots silver on a log scale and Apple on a linear scale.

From:
http://kingworldnews.com/kingworldn..._Suggests_Massive_Move_for_Silver_&_Gold.html

The other thing you and I have done is regularly compare silver to Apple to highlight silver's upside potential. To illustrate this point for KWN readers, I've prepared the following chart which shows that upside potential.

What I have done is overlaid the silver price on Apple's share price, but lagged silver by 40 months. The purpose is to show the big correction in Apple back in 2007-2009 and compare it to silver's present correction, which is the area I have circled. Who, back then, would have thought shares of Apple would climb from $80 to over $600? When the strength of a major bull market is viewed this way, my long-term target of $400 for silver looks quite reasonable. More importantly, I think the underlying fundamentals also make that target reasonable.

 

[vox]

 

[benjamen]

Comparing variable X to the log of variable Y is actually a common way to scaling to make two variables on the same order of magnitude.

However, comparing Apple to Silver is not "Apples to Apples"

Lets look at the three drivers of price for either:

1) Inflation: This would cause both to rise; people run to stocks during times of inflation as well as metals

2) Demand/Use: Apple is producing many of the hottest items on the market right now. Silver is more tied to the general economy, since it is used as a base input into many items. This would explain why he had to lag the two by 40 months.

3) Herd Mentality: The herd likes Apple and is pushing up the stock price, while most people you meet think silver along the lines of cheap jewlery