Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
CHIA Coins After 1st Week of Plotting 140 Plot 14tb Farm. Crunching the Numbers How to Win - 15th May 21
Tips to Create the Best Cross-Functional Teams - 15th May 21
Gold: Lose a Battle to Win the War - 14th May 21
Are You Invested in America’s “Two-Hour Boom” Fast Shipping Stocks? - 14th May 21
Gold to Benefit from Mounting US Debt Pile - 14th May 21
6 Solid Signs You Should Have Your Smart Device Repaired Right Away - 14th May 21
Ways to Finance Your Business Growth - 14th May 21
Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
How Much CHIA Coins Profit from 100 Plot 10tb Farm? Hard Drive Space Mining - 13th May 21
Stock Market Bulls Getting Caught in the Whirlwind - 13th May 21
Legoland Windsor Mini land and Sky Train Virtual Tour in VR 360 - UK London Holidays 2021 - 13th May 21
Peak Growth and Inflation - 13th May 21
Where’s The Fed? Watch Precious Metals For Signs Of Inflation Panic - 13th May 21
Coronavius Covid-19 in Italy in August 2019! - 13th May 21
India Covid Apocalypse Heralds Catastrophe for Pakistan and Bangladesh - 13th May 21
TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
Gold Price During Hyperinflation - 12th May 21
Stock Market Extending Phase Two? - 12th May 21
Crypto 101 for new traders – ETH or BTC? - 12th May 21
Stock Market Enters Early Summer Correction Trend Forecast Time Window - 11th May 21
GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
Cathy Wood Bubble Bursts as ARK Funds CRASH! Enter into a Severe Bear Market - 11th May 21
Apply This Technique to Stop Rushing into Trades - 10th May 21
Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
CHIA Getting Started SSD Crypto Mining by Plotting and Farming on Your Hard Drives Guide - 9th May 21
Yaheetech Mesh Best Cheap Computer /. Gaming Chairs on Amazon Review - 9th May 21
Breaking US Trade Embargo with Cuba - Build 7 Computers in 14 Hours Before Ship Sales Challenge - 9th May 21
Dripcoin Applies New Technology That Provides Faster Order Execution - 9th May 21
Capital Gains Tax Hike News: Was It REALLY to Blame for Sell-off? - 7th May 21
Stock Market Transportation Index Continues To Grind Higher - 7th May 21
SPX Stock Market Correction Arriving or Not? - 7th May 21
How to Invest in an Online Casino? - 7th May 21
Gold & Silver Begin New Advancing Cycle Phase - 6th May 21
Vaccine Economic Boom and Bust - 6th May 21
USDX, Gold Miners: The Lion and the Jackals - 6th May 21
What If You Turn Off Your PC During Windows Update? Stuck on Automatic Repair Nightmare! - 6th May 21
4 Insurance Policies You Should Consider Buying - 6th May 21
Fed Taper Smoke and Mirrors - 5th May 21
Global Economic Recovery 2021 and the Dark Legacies of Smoot-Hawley - 5th May 21
Utility Stocks Continue To Rally – Sending A Warning Signal Yet? - 5th May 21
ROIMAX Trading Platform Review - 5th May 21
Gas and Electricity Price Trends so far in 2021 for the United Kingdom - 5th May 21
Crypto Bubble Mania Free Money GPU Mining With NiceHash Continues... - 4th May 21
Stock Market SPX Short-term Correction - 4th May 21
Gold & Silver Wait Their Turn to Ride the Inflationary Wave - 4th May 21
Gold Can’t Wait to Fall – Even Without USDX’s Help - 4th May 21
Stock Market Investor Psychology: Here are 2 Rare Traits Now on Display - 4th May 21
Sheffield Peoples Referendum May 6th Local Elections 2021 - Vote for Committee Decision's or Dictatorship - 4th May 21
AlphaLive Brings Out Latest Trading App for Android - 4th May 21
India Covid-19 Apocalypse Heralds Catastrophe for Pakistan & Bangladesh, Covid in Italy August 2019! - 3rd May 21
Why Ryzen PBO Overclock is Better than ALL Core Under Volting - 5950x, 5900x, 5800x, 5600x Despite Benchmarks - 3rd May 21
MMT: Medieval Monetary Theory - 3rd May 21
Magical Flowering Budgies Bird of Paradise Indoor Grape Vine Flying Fun in VR 3D 180 UK - 3rd May 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