Silver Is Close To Something Big
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
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.
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.
Often we see a key or big decline in the USD/ZAR ratio just before a massive silver spike.
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 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
The conclusion to draw from this: things take longer in the current period, but they go higher.
The point is that silver is still really cheap
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.