The recent rally also really ignited when it passed this important level.
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.
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.
Silver has already started to move, but what kind of rally can we expect going forward
If the comparison holds true, then we could see a massive rally over the coming months that would likely make new all-time highs.
Silver has now made significant moves over the last couple of months, and appears ready to confirm the bull market.
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.
Is The 50-year Gold Stocks Bear Market Ending ?
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.
The following technique could provide a way to track silver until it provides that clear bull market signal.
Once interest rates had bottomed, there were always going be extremely favourable conditions for a gold bull market
This will be the third wave since the peak in the Dow/Gold ratio, and it is often more intense than the first
So, in terms of US dollars in existence, silver is trading at 1.24% (14.84/1193) of its 1980 high – it is the bargain of the century.
After a period of economic prosperity, it is a given that eventually a period of economic decline will follow. This is a well known reality.
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:
Like all bull markets, the silver bull market has different phases, and theses phases have different intensities of price growth.
Now, silver will not just be willingly restored to being a monetary asset