Silver and the Yield Curve Inversion / Commodities / Gold & Silver 2019

Yield curve inversions have historicallybeen great for silver prices. Currently we are experiencing such a phenomena,and again it is evidence of conditions that are conducive to some impressivesilver rallies.

Below, is a long-term chart showing thespread between the 10-year Treasure Note Yield and the 3-month Treasury Bill Rate.

I have chosen these two to show data for along-term analysis. There appears to be a mega rounding top. The spread hasjust recently gone negative (inverted). There is a great likelihood that thespread could go lower, given the rounding top and a similarity to the 70spattern (ABC).

Silver has already started to move, but whatkind of rally can we expect going forward? Previously, I have argued that weare likely to see a rally similarto the late 70s .

Below, is a comparison of the above chartand a long-term silver chart to:

Notice how there were two deep negativespread dives in the 70s. As soon as those spreads went negative the first timeduring those inversions, silver started a massive rally.

As soon as the current inversion started,silver also started to rally. Will we have a shallow negative spread dive likethe two recent ones, or will we see a deep and protracted negative spread divelike that of the 70s?

A deep dive like the 70s would be consistentwith conditions ideal for a monster silver rally.

For more on this, andsimilar analysis you are welcome to subscribe to my premium service. Ihave also recently completed a Silver Fractal Analysis Report as well as a Gold Fractal Analysis Report.

Warm regards,

Hubert

“And it shall come to pass, that whosoevershall call on the name of the Lord shall be saved”

http://hubertmoolman.wordpress.com/

You can email any comments to hubert@hgmandassociates.co.za

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