Is Silver really a hedge against inflation?

[Valknor]

In the short term, Silver has had a hell of a run, going from about $12.50 at the bottom of March 2020, to $34 in March of 2025, an increase of 172%. But lets look at the inflation data from the Bureau of Labor Statistics. When the Federal Reserve began issuing notes in 1914, one of their dollars was worth one Morgan silver dollar from the U.S. Mint, which where 90% silver and weighing 26.73 grams. Today's melt value for Morgans is $26.35. Sounds great, doesn't it? Except according to the Bureau of Labor Statistics, it would cost $31.94 today to have the same purchasing power of one dollar in 1914. Which means silver has not kept up with inflation, and has actually lost around 17.5% of its value from 1914 to 2025, despite its massive recent gains.

So if you saved Morgans back then your descendants would have been allot better off than if you stacked federal reserve notes, but silver remains undervalued compared to its traditional price. Assuming the government is being honest about inflation, Morgans need to sell for $31.94 to hit break even on inflation, and fine silver needs to be about $41.29 an ounce.