Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
How Stagflation Effects Stocks - 5th Dec 21
Bitcoin FLASH CRASH! Cryptos Blood Bath as Exchanges Run Stops, An Early Christmas Present for Some? - 5th Dec 21
TESCO Pre Omicron Panic Christmas Decorations Festive Shop 2021 - 5th Dec 21
Dow Stock Market Trend Forecast Into Mid 2022 - 4th Dec 21
INVESTING LESSON - Give your Portfolio Some Breathing Space - 4th Dec 21
Don’t Get Yourself Into a Bull Trap With Gold - 4th Dec 21
GOLD HAS LOTS OF POTENTIAL DOWNSIDE - 4th Dec 21
4 Tips To Help You Take Better Care Of Your Personal Finances- 4th Dec 21
What Is A Golden Cross Pattern In Trading? - 4th Dec 21
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - Part 2 - 3rd Dec 21
Stock Market Major Turning Point Taking Place - 3rd Dec 21
The Masters of the Universe and Gold - 3rd Dec 21
This simple Stock Market mindset shift could help you make millions - 3rd Dec 21
Will the Glasgow Summit (COP26) Affect Energy Prices? - 3rd Dec 21
Peloton 35% CRASH a Lesson of What Happens When One Over Pays for a Loss Making Growth Stock - 1st Dec 21
Stock Market Sentiment Speaks: I Fear For Retirees For The Next 20 Years - 1st Dec 21 t
Will the Anointed Finanical Experts Get It Wrong Again? - 1st Dec 21
Main Differences Between the UK and Canadian Gaming Markets - 1st Dec 21
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - 30th Nov 21
Omicron Covid Wave 4 Impact on Financial Markets - 30th Nov 21
Can You Hear It? That’s the Crowd Booing Gold’s Downturn - 30th Nov 21
Economic and Market Impacts of Omicron Strain Covid 4th Wave - 30th Nov 21
Stock Market Historical Trends Suggest A Strengthening Bullish Trend In December - 30th Nov 21
Crypto Market Analysis: What Trading Will Look Like in 2022 for Novice and Veteran Traders? - 30th Nov 21
Best Stocks for Investing to Profit form the Metaverse and Get Rich - 29th Nov 21
Should You Invest In Real Estate In 2021? - 29th Nov 21
Silver Long-term Trend Analysis - 28th Nov 21
Silver Mining Stocks Fundamentals - 28th Nov 21
Crude Oil Didn’t Like Thanksgiving Turkey This Year - 28th Nov 21
Sheffield First Snow Winter 2021 - Snowballs and Snowmen Fun - 28th Nov 21
Stock Market Investing LESSON - Buying Value - 27th Nov 21
Corsair MP600 NVME M.2 SSD 66% Performance Loss After 6 Months of Use - Benchmark Tests - 27th Nov 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Silver: The “Five Year Plan” and the Great Leap Forward

Commodities / Gold and Silver 2016 Apr 28, 2016 - 03:57 PM GMT

By: DeviantInvestor

Commodities

Five years ago paper silver contracts on the COMEX hit a multi-decade high over $48 on April 29, 2011.

At the end of April 2016 the silver price is bouncing around $17, down about 65% from its April 2011 high.  The low occurred at about $13.60 in December of last year, when paper silver prices were down about 70% from their April 2011 high.


Let’s review significant prices roughly every five years back for 30 years:

Date                 Low Price        High Price       Comment

Dec 2015        13.60                                        Major low

Apr 2011                                  48.58               Multi-decade high

May 2006                                 15.20               Multi-decade high

Nov 2001        4.01                                           Ten year low

Jly 1997           4.18                                           Low

Feb 1991         3.50

Apr 1987                                  9.79

Examine the following log-scale graph of COMEX silver.  The red lines are 4.75 years apart.  The green line shows a long term exponential trend upward.

 K-silver - 30 yr

What this tells us:

  • Silver prices trend upward exponentially, in the long term, just like debt, military expenses, prices for potatoes, cigarettes, devaluation of fiat currencies, the S&P 500 Index, and expenditures to purchase a Presidency.
  • An important high occurred in 2011, and an equally significant low occurred in December 2015.
  • The December low was about half the exponential trend price and the April 2011 high was about double the exponential trend price. Silver prices rise to extremes, and then fall to crazy lows.
  • The December 2015 low may have been the lowest silver price for a very long time, given the ongoing devaluation of currencies, Chinese physical markets that will compete with the COMEX, the incredible debt that doubles about every eight years, the increasing investment demand for silver and weakening supply, and the price suppression during the past three years.

WHAT WE KNOW FOR CERTAIN:

  1. Central banks want inflation and devaluation of their currencies. One way or another they are likely to create price inflation since they own multiple “printing presses.”  The results, for all but the elite, will be ugly.
  2. Central banks abhor deflation. They will do whatever is necessary to avoid deflation.  They are likely to succeed, thanks to their “printing presses.”
  3. Governments want inflation and higher taxes. They hate deflation and lower taxes.  Governments exist to spend money  –  more and more money.  The US national debt has increased from $3 billion in 1913 to nearly $20,000 billion today.  Expect government deficit spending and dollar devaluation to continue, along with higher prices for what we need to live.
  4. The inevitable consequences of deficit spending, currency devaluations, central bank “printing,” and politicians being politicians is higher prices – exponentially higher prices. Look at the exponential trend line in silver prices that runs from about $3.50 in 1991 to about $30 in 2016.

CONCLUSIONS:

  • Silver prices hit an important low in December 2015. Expect a “great leap forward” in prices during the next five years.
  • Silver prices are “managed” by several powerful groups. Expect volatility.  In simple terms, the sequence is:  Run prices up, suck in investors near the top, increase margins, crash prices by selling heavily with paper contracts, disillusion the “amateurs,” Goldman announces “research” that indicates silver and gold will fall for several years, allow a small rally, force prices down again, big traders cover shorts, margins are reduced, more “bad” news is distributed on silver, and the large players begin buying while small investors are disgusted and beaten down by silver “management,” …  and the cycle repeats.
  • Central bankers will do what they do – devalue the currencies and “print” as much as possible to benefit themselves and the financial and political elite. This will increase silver prices.
  • Politicians will do what they do – spend money and increase debt. This will increase silver prices.
  • Large traders will do what they do – push prices higher and then crash them lower. The low occurred in December 2015 – expect higher silver prices for several, probably many years.
  • Stackers will do what they do – buy, stack, and wait. They see the big picture.  Silver prices (kitco.com) during the past 100 years:

1913           $0.58                                 Fed Reserve created

1953           $0.85

1973           $3.14

1980                               $50.00           High

1983           $9.12

1993           $4.57

2003           $4.88

2011                               $48.50           High

2013           $23.79

2015           $13.82                               Low

Late April 2016              $17.00

  • Silver prices will move upward to $50 and eventually to $100. Depending upon the degree of dollar devaluation, how much “money printing” occurs, the loss of dollar reserve currency status, hyperinflation, importance of the Chinese physical exchanges, and much more … silver prices could race far higher than $100.  We shall see …

Read:  Nine Meals from Anarchy.

Subscribe to NFTRH Premium for your 25-35 page weekly report, interim updates (including Key ETF charts) and NFTRH+ chart and trade ideas or the free eLetter for an introduction to our work. Or simply keep up to date with plenty of public content at NFTRH.com and Biiwii.com.

By Gary Tanashian

http://biiwii.com

© 2016 Copyright  Gary Tanashian - All Rights Reserved

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.

Gary Tanashian Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in