Silver Now In Line To Hammer The US Dollar?
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.
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
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.
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.
Until a significant portion of these debts is repaid or defaulted on, it would be foolish to talk about a top in precious metals.
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.
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.