Analysis Of The Long-Term Silver Chart Suggests Significantly Higher Prices
In a previous article, I wrote about the shift to measuring wealth in ounces instead of Dollars. In that same article, I expressed my opinion that I consider silver bullion to be one of the best current opportunities to increase one's gold ounces.
Here, I would like to point out some interesting signals on the long-term chart for silver.
Below, is a long term chart for silver:
On the chart, I have highlighted two fractals (or patterns), marked 1 to 3, which appear similar. What makes these two fractals so special, is the similarity of the circumstances in which they exist.
There was a significant peak in the Dow (1973 and 2007) between point 1 and 2 of both fractals. Both peaks in the Dow came about 7 years after the peak in the Dow/Gold ratio. After point 2, on both fractals, the oil price made a significant peak (1974 and 2008), about 8 years after the peak in the Dow/Gold ratio.