Precious metals researcher, forecaster and analyst Hubert Moolman predicts higher silver prices in 2018 based on the amount of U.S. paper money relative to the silver price.

Moolman explains that silver’s current trading price of $17 per troy ounce is 34 percent of the metal’s all-time high of $50, registered in 1980.

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“When you look at the silver price, relative to U.S. currency, the amount of actual U.S. dollars in existence, then it is at its lowest value it has ever been.” according to Moolman.

The ratio of the price of silver to the number of U.S. paper dollars in existence sits at 0.004, compared to 0.361 in 1980 when silver hit its peak, said Moolman.

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“The U.S. monetary base is currently around $3.946 trillion,” Moolman said. “Therefore, if silver today was at its 1980 value, relative to the monetary base, it would be around $1,424 [per troy ounce].”