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
Gold is moving closer to confirming a multi-year bull market per my long-term comparison. A decisive mover higher than the $1375 area would be confirmation of the bull.
Silver is currently going for a major breakout.
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.
A key difference between silver and gold prices is the fact that silver already bottomed in 1993, whereas gold bottomed only in 1999.
We are getting very close to what I believe is the final confirmation of the coming multi-year gold bull market.
Silver Price Forecast 2019/2018: These Indicators Are Predicting New All-time High Silver Prices The Dow/Gold ratio is a very reliable measure for where we are on the long-term economic timetable. It allows for an accurate reading of key economic conditions that are present at a particular period of time. With regards to silver, the period…
Is The 50-year Gold Mining Bear Market Coming To An End? By Hubert Moolman 22 August 2018 Gold stocks is in a 50-year bear market when measured in gold. This (very) roughly means that on average, it has been more economical to buy gold rather than to mine it. Interestingly, South African gold mining production…
Silver used to be a significant part of the monetary base in many countries. You could find it as part of monetary reserves together with gold, as well as coinage in circulation.
Oil prices made a major peak in 2008. In many ways the peak is similar to the 1980 one. It took 24 years for prices to surpass the 1980 peak (see macrotrends.net chart below). It has now been 10 years since the 2008 peak. This tells me that oil will struggle for many years to…
Here are a few reasons why gold should be accumulated at these levels: 1. Rising Interest Rates Although gold rose significantly from 2001 to 2011, it was not really the ideal conditions. There were many reasons for conditions not being ideal, such as: rising stock markets and major commodities like oil (more markets rising means…
Let’s take a look at silver priced in oil (WTI Crude), the Dow and US dollars:
By Hubert Moolman 10 August 2018 Let’s take a look at gold priced in oil (WTI Crude), the Dow and US dollars: Above, is gold priced in oil from 1983 to now. Price has moved in a large channel before it broke out at the end of 2014. This is really significant given the importance…
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.
The pressure on the current monetary establishment has been building steadily. Just because gold and silver has not made a major move up, does not mean that the terminal illness of the international monetary system has now gone away. On the contrary, its imminent demise is now more certain, given the various financial confirmations (see…
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.
Silver is currently trading around $17 an ounce. This is around 34% of its 1980 all-time high of $50. However, this is an incomplete representation of what silver is really trading at, relative to US dollars. When you look at the silver price, relative to US currency (the amount of actual US dollars) in existence, then it is at its lowest value it has ever been.
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:…
Silver Prices 2018/2017: How Silver Could Rally Significantly Over The Coming Months The silver price and the US Dollar/South African Rand exchange rate (USD/ZAR) have a very interesting relationship that goes back a long way. In the long run, the two move in opposite directions. When the USD/ZAR rate is moving up, the silver price…
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…