Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24
US House Prices Trend Forecast 2024 to 2026 - 11th Oct 24
US Housing Market Analysis - Immigration Drives House Prices Higher - 30th Sep 24
Stock Market October Correction - 30th Sep 24
The Folly of Tariffs and Trade Wars - 30th Sep 24
Gold: 5 principles to help you stay ahead of price turns - 30th Sep 24
The Everything Rally will Spark multi year Bull Market - 30th Sep 24
US FIXED MORTGAGES LIMITING SUPPLY - 23rd Sep 24
US Housing Market Free Equity - 23rd Sep 24
US Rate Cut FOMO In Stock Market Correction Window - 22nd Sep 24
US State Demographics - 22nd Sep 24
Gold and Silver Shine as the Fed Cuts Rates: What’s Next? - 22nd Sep 24
Stock Market Sentiment Speaks:Nothing Can Topple This Market - 22nd Sep 24
US Population Growth Rate - 17th Sep 24
Are Stocks Overheating? - 17th Sep 24
Sentiment Speaks: Silver Is At A Major Turning Point - 17th Sep 24
If The Stock Market Turn Quickly, How Bad Can Things Get? - 17th Sep 24
IMMIGRATION DRIVES HOUSE PRICES HIGHER - 12th Sep 24
Global Debt Bubble - 12th Sep 24
Gold’s Outlook CPI Data - 12th Sep 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Silver Is Insurance Against The Worst Part Of This Depression

Commodities / Gold and Silver 2016 Jul 27, 2016 - 11:58 AM GMT

By: Hubert_Moolman

Commodities

The worst part of the world's ongoing financial crisis is still on the way: A crisis that has its roots in the debt-based monetary system. The debt-based monetary system has facilitated the growth of debt, to levels that will inevitably bring total collapse.

Everyday we see more and more events (think Greece, Deutsche Bank, etc.) that suggest that the total collapse is very close. The number of these will increase over the coming months, while their extent will also greatly magnify.


The high debt levels are a huge burden that will strangle the world economy, since future production is reduced by debt obligations. That is just how it works. When you have huge debt, you will have less of your future income/production available due to the debt obligation that has to be met.

These debts will have to be settled. There will be no progress (growth in economy) until debts are settled. The settlement of these debts is that "worst part" of the financial crisis. The majority of these settlements will occur as the stock market collapses, and currencies/banks fail (the collapse is the settlement). This will be the greatest depression.

The crisis cannot be stopped, but you do not have to be caught up in its worst effects. Silver, as I have previously explained, is virtually the opposite of debt and, therefore; great insurance against the coming debt (particularly: stock market, currency and banking system) collapse. It is for this reason that the chart for silver prices is looking so bullish, whereas the charts for the Dow and other goods are looking really bad.

Below is a comparison of Dow charts (1920s vs 1998 - 2016):

Dow Monthly Charts

Above, is a fractal comparison between the current period (1998 to 2016) and the 1920/30s, for the Dow (charts from tradingview.com). Follow the two patterns marked 1 to 5, on both charts. I have also indicated where silver peaks and bottoms occurred, to show that both patterns exist in similar conditions. This means that there is a strong likelihood that the crash will occur.

The Dow is looking for that peak at point 5 (on the current pattern), from where it could free fall, much like the October 1929 crash. The Dow has stayed at these peak levels for longer than I expected. However, this appears to be what is needed to get most people believing that the 7-year rally will continue (a classical set-up for a massive collapse).

Below, is a short-term chart of the Dow/Silver ratio (from tradingview.com):

Dow/Siver Chart

The ratio has broken down from the support-line indicated. It has also broken below the key-level highlighted. The fact that the Dow's recent rally is represented by a retest of a breakdown of this ratio, instead of a retest of a breakout, supports the likelihood that the Dow's recent rally is fake.

Once the retest of the recent breakdown is complete; this ratio will decline very fast, as will the Dow. This decline is supported by a more longer-term analysis of this ratio.

Below, is a fractal analysis for silver:

Silver Chart

On the silver chart, I have highlighted two patterns that appear similar. I have marked them 1 to 6 to show how they might compare. Both patterns start from a significant silver top. Both patterns represent the end part or handle of a cup and handle-type pattern. If the comparison is justified, then we are currently just after point 6, the point where a major breakout occurred.

We will likely see much higher prices over the coming months.

For more of this kind of analysis on silver and gold, you are welcome to subscribe to my premium service. I have also recently completed a Long-term Silver Fractal Analysis Report .

Warm regards
Hubert

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

http://hubertmoolman.wordpress.com/

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

© 2016 Copyright Hubert Moolman - 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.


© 2005-2022 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