The analysis of two similar economic cycles has revealed some interesting facts about silver and the monetary system.
BTC Still have some room to go higher it seems.
This makes perfect sense in these time, since it is all about the US dollar.
Bitcoin is currently playing catch up, and this brings us to why Bitcoin is actually leading in the short-term time frame
Gold, silver and cryptocurrencies will feast on US Dollar weakness like hungry lions on weak prey.
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.
We are still early in this rally, so we could see a huge move
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.
There were two other periods in history that similar situations occurred, but gold actually was warning of a system collapse (or system bank run, if you will)
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
The conclusion to draw from this: things take longer in the current period, but they go higher.
Until a significant portion of these debts is repaid or defaulted on, it would be foolish to talk about a top in precious metals.
The point is that silver is still really cheap
there is a relationship between significant Gold rallies and the US Dollar index.
We are now just after the Dow peak in the current cycle. If the Dow peak in Feb 2020 was indeed the top, then we are likely to see a Silver rally that will at least match the x10 during the period from 1977 to early 1980.
During each credit cycle, Silver and Gold prices mostly loses relative value to assets like general stocks and commodities.
Since the current stimulus (increase in Fed balance sheet) is likely to fail, due to the massive deflationary forces , they are likely to just keep on pumping more and more.
So, for the Silver investor, what the US Dollar index might do over the coming years, is a very important question to answer.
Choose to likely get X10 returns with silver or face the risk of getting your general stock market investments cut by at least 90%, in my opinion.
Gold and the Debasement of Currency Con 29 April 2020 It is reasonably well known that many Roman emperors debased their currency (coinage). This was a very bad practice, since it is really a reflection of the debasement of the value of the kingdom (empire or country); going from a honest and just society to…
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Bitcoin is one of the assets that historically benefits enormously from central bank money printing. Right now central banks have gone crazy with pumping out cash to stimulate their dying economies.
Due to these almost perfect conditions, margins for gold miners are looking great and will likely continue to get better.
South African gold stocks leading the charge.
With the 2008 actions they were able to avoid the collapse until now. Will the current actions yield the same results, or will we see a completely different outcome?
Silver is still in consolidation mode since early September, but it appears ready to rally over a sustained period of time. Below, is a chart of silver: On the chart there appears to have formed some fractals. The current one has also broken out at the black line recently (just after point C). As expected,…
DRD Ready To Fly?
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.
This Will Signal A Massive Gold Stocks Rally
Silver is still in consolidation mode since early September, but could be close to a resolution.
The coming leg higher is the one that will likely take prices to all-time highs.
Gold Stocks are confirming this Gold Bull Market.