The Rise of Silver and Major Economic Decline / Commodities / Gold & Silver 2019
After a period of economic prosperity, itis a given that eventually a period of economic decline will follow. This is awell known reality.
Since at least the early 80s there has beena period of great economic prosperity. Yes, there were many recessions duringthat period, however, as a whole it has been a prosperous period.
Now, there are many signs that we arelikely to get a period of serious economic decline. The type that has not beenseen in many a lifetime of those living today.
Previously, I have presented a few of thosesigns (or measures), and now there has been important development of thosesince then.
Let’s take a look at silver priced in oil(WTI Crude), the Dow and US dollars:
Above, is silver priced in oil from 1983 tonow. Price has moved in a large channel before it broke out in 2008. This isreally significant given the length of time involved.
However, more importantly there is amassive rounded bottom which is a good base for the coming higher prices. Atthe end of the bottoming pattern there appears to be a bullish wedge.
Price has now broken out of the wedge, aswell as retraced to the breakout area. A breakout at the top line of the giantcup will confirm a hugely depressed economy (more than all recessions of thelast 35 years at least)
Just like for oil, the relationship betweensilver and the Dow is an important measure of economic conditions.
Here is a chart of silver priced in theDow:
Currently silver priced in the Dow is closeto all-time lows. Economic conditions has been favourable to paper anddebt-based assets. The bullish wedge is an indication that all this is about tochange.
There has now been a breakout of the wedgeand the ratio seems ready to go much higher.
On the chart, I have indicated how theperiods indicated by the green arrows have been associated with economicprosperity, and the red one with economic decline. Higher silver prices anddeclining stock prices will virtuallyguarantee (or represent) major economic pain over the coming years.
The US dollar silver price is currentlycompleting a bottoming process similar to that of 2001 to 2003:
This is indicated by the points marked as 3to 5, which is forming a triangle pattern. A breakout of the current patternwill likely set off a massive multi-year 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”
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You can email any comments to hubert@hgmandassociates.co.za
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Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.
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