If historical correlations matter, it is hard to believe silver won’t follow the same path. That alone would imply a 110% return from its current levels. Relative to M2 money supply, silver remains one of the cheapest tangible assets in markets today.

A long-term gold valuation model, which assumes gold will account for the majority of international reserves, suggests the gold price to exceed $8,000 in the coming decade.

Gold and silver prices rallied Thursday, scoring settlement highs that reached more than a year for gold and to seven weeks for silver. Up for a third time this week, gold for April delivery tacked on $46.30, or 2.4%, to close at $1,995.90 an ounce on the Comex division of the New York Mercantile Exchange.

Once regarded as a “barbarous relic” by the Wall Street financial sector, gold and silver are now in heavy demand to hedge against inflation and financial risk.

So far, the commodity market’s reaction has gone down different routes with precious metals rallying as they benefitted from collapsing yields and safe-haven demand.