The Dow Points To Higher Silver Prices For Years To Come / Commodities / Gold & Silver 2020

The Dow is at, or very close to a 90-yearresistance line:

Could a top be in, or is it extremely close?What I do know, from my own research, is that major Dow peaks are extremelyimportant when it comes to Silver rallies.

The best part of Silver rallies often comeafter major Dow peaks, and can last for years.

Below, is a another long-term chart of theDow (with a Silver chart at the bottom):

I have done a type of cycle analysis to showhow major Silver rallies interact with the Dow.

Historically there is an established patternof credit extension, during which the Dow benefits proportionally more thanSilver prices do. Once the Dow’s rally has run its course, Silver prices catchup while the Dow corrects or goes sideways.

The last major Silver rally was in the 70s.This came after a 40.5 year Dow rally from July 1932 to January 1973. In thechart above, one can see how the best part of the 1970s Silver rally came afterthe Dow’s nominal peak (the last major Dow peak).

After the great Silver peak in 1980, the Dowstarted a new cycle, and has been rallying for about 40 years. It is verylikely at, or close to a new major nominal peak. This bullishoutlook for Silver really supports the likelihood of a Dow top beingin, or very close, when one considers the theory above.

Based on this analysis, it could be a greattime to still accumulate Silver - much like it was in early 1973.

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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