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
Inflation Consequences for the Stock Market, FED Balance Sheet - 24th Oct 21
To Be or Not to Be: How the Evergrande Crisis Can Affect Gold Price - 24th Oct 21
During a Market Mania, "no prudent professional is perceived to add value" - 24th Oct 21
Stock Market S&P500 Rallies Above $4400 – May Attempt To Advance To $4750~$4800 - 24th Oct 21
Inflation and the Crazy Crypto Markets - 23rd Oct 21
Easy PC Upgrades with Motherboard Combos - Overclockers UK Unboxing - MB, Memory and Ryzen 5600x CPU - 23rd Oct 21
Gold Mining Stocks Q3 2021 - 23rd Oct 21
Gold calmly continues cobbling its Handle, Miners lay in wait - 23rd Oct 21
US Economy Has Been in an Economic Depression Since 2008 - 22nd Oct 21
Extreme Ratios Point to Gold and Silver Price Readjustments - 22nd Oct 21
Bitcoin $100K or Ethereum $10K—which happens first? - 22nd Oct 21
This Isn’t Sci-Fi: How AI Is About To Disrupt This $11 Trillion Industry - 22nd Oct 21
Ravencoin RVN About to EXPLODE to NEW HIGHS! Last Chance to Buy Before it goes to the MOON! - 21st Oct 21
Stock Market Animal Spirits Returning - 21st Oct 21
Inflation Advances, and So Does Gold — Except That It Doesn’t - 21st Oct 21
Why A.I. Is About To Trigger The Next Great Medical Breakthrough - 21st Oct 21
Gold Price Slowly Going Nowhere - 20th Oct 21
Shocking Numbers Show Government Crowding Out Real Economy - 20th Oct 21
Crude Oil Is in the Fast Lane, But Where Is It Going? - 20th Oct 21
3 Tech Stocks That Could Change The World - 20th Oct 21
Best AI Tech Stocks ETF and Investment Trusts - 19th Oct 21
Gold Mining Stocks: Will Investors Dump the Laggards? - 19th Oct 21
The Most Exciting Medical Breakthrough Of The Decade? - 19th Oct 21
Prices Rising as New Dangers Point to Hard Assets - 19th Oct 21
It’s not just Copper; GYX indicated cyclical the whole time - 19th Oct 21
Chinese Tech Stocks CCP Paranoia, VIES - Variable Interest Entities - 19th Oct 21
Inflation Peaked Again, Right? - 19th Oct 21
Gold Stocks Bouncing Hard - 19th Oct 21
Stock Market New Intermediate Bottom Forming? - 19th Oct 21
Beware, Gold Bulls — That’s the Beginning of the End - 18th Oct 21
Gold Price Flag Suggests A Big Rally May Start Soon - 18th Oct 21
Inflation Or Deflation – End Result Is Still Depression - 18th Oct 21
A.I. Breakthrough Could Disrupt the $11 Trillion Medical Sector - 18th Oct 21
US Economy and Stock Market Addicted to Deficit Spending - 17th Oct 21
The Gold Price And Inflation - 17th Oct 21
Went Long the Crude Oil? Beware of the Headwinds Ahead… - 17th Oct 21
Watch These Next-gen Cloud Computing Stocks - 17th Oct 21
Overclockers UK Custom Built PC 1 YEAR Use Review Verdict - Does it Still Work? - 16th Oct 21
Altonville Mine Tours Maze at Alton Towers Scarefest 2021 - 16th Oct 21
How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
The Only way to Crush Inflation (not stocks) - 14th Oct 21
Why "Losses Are the Norm" in the Stock Market - 14th Oct 21
Sub Species Castle Maze at Alton Towers Scarefest 2021 - 14th Oct 21
Which Wallet is Best for Storing NFTs? - 14th Oct 21
Ailing UK Pound Has Global Effects - 14th Oct 21
How to Get 6 Years Life Out of Your Overclocked PC System, Optimum GPU, CPU and MB Performance - 13th Oct 21
The Demand Shock of 2022 - 12th Oct 21
4 Reasons Why NFTs Could Be The Future - 12th Oct 21
Crimex Silver: Murder Most Foul - 12th Oct 21
Bitcoin Rockets In Preparation For Liftoff To $100,000 - 12th Oct 21
INTEL Tech Stock to the MOON! INTC 2000 vs 2021 Market Bubble WARNING - 11th Oct 21
AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
Stock Market Wall of Worry Meets NFPs - 11th Oct 21
Stock Market Intermediate Correction Continues - 11th Oct 21
China / US Stock Markets Divergence - 10th Oct 21
Can US Save Taiwan From China? Taiwan Strait Naval Battle - PLA vs 7th Fleet War Game Simulation - 10th Oct 21
Gold Price Outlook: The Inflation Chasm Between Europe and the US - 10th Oct 21
US Real Estate ETFs React To Rising Housing Market Mortgage Interest Rates - 10th Oct 21
US China War over Taiwan Simulation 2021, Invasion Forecast - Who Will Win? - 9th Oct 21
When Will the Fed Taper? - 9th Oct 21
Dancing with Ghouls and Ghosts at Alton Towers Scarefest 2021 - 9th Oct 21
Stock Market FOMO Going into Crash Season - 8th Oct 21
Scan Computers - Custom Build PC 6 Months Later, Reliability, Issues, Quality of Tech Support Review - 8th Oct 21
Gold and Silver: Your Financial Main Battle Tanks - 8th Oct 21
How to handle the “Twin Crises” Evergrande and Debt Ceiling Threatening Stocks - 8th Oct 21
Why a Peak in US Home Prices May Be Approaching - 8th Oct 21
Alton Towers Scarefest is BACK! Post Pandemic Frights Begin, What it's Like to Enter Scarefest 2021 - 8th Oct 21
AJ Bell vs II Interactive Investor - Which Platform is Best for Buying US FAANG Stocks UK Investing - 7th Oct 21
Gold: Evergrande Investors' Savior - 7th Oct 21
Here's What Really Sets Interest Rates (Not Central Banks) - 7th Oct 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