Gold, The Great Depression and the On-going Monetary System Bank Run By Hubert Moolman 21 May 2023 We are in the midst of a system bank run, which are in the greater sense really a bank run on the United States of America, the issuer of the reserve currency of the world. The nations that…
The analysis of two similar economic cycles has revealed some interesting facts about silver and the monetary system.
It is significant to note that silver and the Dow has been moving in similar direction at least since 2019. At some point the two are bound to diverge
The fact that silver is still way below its all-time high means that the worst is yet to come for the world economy, and for the world in general.
BTC Still have some room to go higher it seems.
Bitcoin is currently playing catch up, and this brings us to why Bitcoin is actually leading in the short-term time frame
It is the the massive debt. It cannot be serviced. It will collapse the whole system.
Often we see a key or big decline in the USD/ZAR ratio just before a massive silver spike.
The US dollar cycle has turned and is likely to be under severe pressure over the coming months. This will significantly support USD gold prices.
A breakout at the top blue line could see price going parabolic.
For now, they all provide “crisis value”, by simply being an acceptable fiat alternative to many.
The Dow went from around 2700 at the peak in 1987 (point 1) to a top of more than 29000 in 2020. Silver will do even better.
The current year has a lot in common with 1973 (as illustrated in previous posts), and I have every expectation that we will see a great year for gold and silver prices.
Signs of a monetary collapse – Bitcoin (BTC) new all-time highs are coming.
The recent rally also really ignited when it passed this important level.
A comparison to the 70s situation will eventually tell us a lot about the current condition of the monetary system.
A breakdown of the US dollar would be a great confirmation of a sustained silver rally
Until a significant portion of these debts is repaid or defaulted on, it would be foolish to talk about a top in precious metals.
Historically there is an established pattern of credit extension, during which the Dow benefits proportionally more than Silver prices do. Once the Dow’s rally has run its course, Silver prices catch up while the Dow corrects or goes sideways.
Ammunition to keep silver prices low is virtually depleted.
These are setting up really favourable conditions for Silver prices and the position it has in the international monetary system.
The last time there was a decline close to this magnitude,there was a sharp deflationary recession. That was the one that occurred from 1920 to 1921.
The end or peak of debt-based assets, and the significant appreciation of real assets like gold and silver.
The current silver rally has the best ingredients to be the most explosive silver rally for the last 100 years.
There is a problem however. One of them appears to be “lying.” There is no way that both of these can be starting a new bull market.
When the increase in credit or the money supply has run its course, and is unable to drive paper prices higher; value then flees from paper assets to safe assets such as physical gold and silver, causing massive price increase.
Once interest rates had bottomed, there were always going be extremely favourable conditions for a gold bull market
I have shown how we could be close to major financial/monetary crisis. The following chart that shows the ratio of gold to the monetary base was used:
we could be close to major financial crisis with the monetary system at the center
The current silver bottoming process is very similar to that of 2001 to 2003. It took a while for silver to establish a base which set up the bull rally in the following years to 2011.
Silver is running out of time and space (on the chart) to decide where it will go over the next months and years.
The relationship between silver and the Dow is such that significant Dow peaks are often followed by significant silver rallies. It is for this reason that silver can provide a great opportunity to bank Dow profits and even grow them much bigger.
It really should be clear that a major international banking crisis is inevitable, and likely to occur fairly soon. Due to the extreme debt levels, many banks are close to that point of failure.
One of the biggest obstacles is the fact that unlike the 1983 scenario, we are currently right after a major interest rate bottom. This prospect of higher interest rates going forward, will act like a strong wind pushing gold higher, while keeping debt-based assets, like the Dow and bonds, down
Silver Prices Forecast 2018: Previously, I have shown how conditions in the financial markets are very similar to that of the early 80s (circa 1983). Basically, the Dow was at a start of a long-term rally around 1983, and silver just broke down and entered a long-term bear market. However, as I have predicted in…
Silver Price Forecast 2018: The US Dollar Breakdown Clears The Way For A 70s Style Silver Rally The apparent breakdown of the US Dollar Index is setting silver up for a spectacular rally. In fact, it could rally like it did in the late 70s. Below, is a long-term chart of the US dollar Index:…
Gold Price Forecast 2018/2017: Gold’s Big Move Gold is currently trading near a critical level, from where a massive move up or down is imminent. One of the measures that illustrate we are a close to a big move, is the following resistance line on the gold chart that I have previously highlighted. Below, is…
However, as explained above, it is likely that we could end up having a more concentrated occurrence of events that are silver price positive, if the stock market peak this year (which might have happened already), and we also have a major US dollar collapse this year or next year.
Silver Price Forecast – Gold Price Forecast – Gold and Silver: Boom or Bust? By Hubert Moolman Gold and silver prices are at a critical point. It appears that we will see massive price movements up or down, soon. Conditions are very similar to that of the early 80s (circa 1983), for example, when the…
Silver in South African Rand The South African Rand is often a leading indicator for where silver (in dollars) is going, as previously explained. Furthermore, the chart of the silver price in rands can often provide very clear signals or patterns of what might happen to price. Currently, the silver price in rands provides the…
Hubert Moolman on SILVER and GOLD 