Gold, Silver and Crypto | How Charts Look Before US Dollar Meltdown / Commodities / Gold & Silver 2024

The US dollar is on the brink of a majormeltdown. This is apparent based on fundamental and technicalanalysis. Over the last 5 years, the US dollar has sustained somemajor damage through policy without losing much value against other fiat currencies.

In other words, the market has not yettaken into account the true (debased) state of the US dollar, but it will soon.Since the US dollar is probably the  mostsignificant currency in the world, its meltdown will be devastating for many.

Therefore, it is imperative to find a safehaven during a US dollar meltdown. This is a monetary crisis and shouldpreferably be addressed with monetary alternatives. Gold and silver are thepremier monetary assets, so they should be an obvious choice.

Bitcoin and cryptocurrencies—love them or hate them—are, in themselves, a major sign of monetarymeltdown. I have previously written about this,and how it relates to the low velocity of money now and during the GreatDepression. These will alsolikely provide (temporary) protection against the effects of a US dollarmeltdown.

The charts for these safe havens are really bullish and warn of amajor US dollar meltdown.

Gold

Below is a gold chart Ishared previously:

I've marked out twopatterns showing how the recent breakout puts gold in the acceleration phase ofthe bull market. Both patterns start at the Dow/Goldratio peak (1966 and 1999, respectively). After the Dow/Gold ratio peaks, goldwent on a strong bull run, which continued even after the 1973 and 2007 Dowpeaks, respectively.

After the peaks at point a, the chartformed a cup-type pattern. During this consolidation (the cup), there was asecondary Dow/Gold peak, and interest rates also reached an important low. Thestructure of the 70s pattern was such that after the bottom (point b) duringthe cup phase, the price moved relatively slowly up at first, but once it brokeout at the red line, it moved up quite fast.
The current pattern may be following thesame progression. The move since the bottom of the cup phase (point b) has beenslow, but now that the price has finally broken out at the red line, we may seean accelerated increase in price (of course, we are probably seeing some sortof retest or consolidation before the accelerated move higher).

Silver
Below is a silver chart previouslyshared:

The 49-year pattern from 1919 to 1968 has asimilar form to the one that started circa 1980. Here, I have pointed out theirsimilarity as it relates to time. There may be rounding differences due to theyearly closing balances.

The first cup started at the 1919 peak, andit took about 13 years to get to the bottom (1932), whereas it took about 21years to get to the secondary bottom in 1940. In a similar manner, the secondcup started at the 1980 peak, and it also took about 13 years to get to the1992 bottom and about 21 years to get to the secondary bottom in 2000.

It took about 24 years from the secondarybottom in 1940 to the break out of the cup in 1963. About 24 years have passedsince the secondary bottom in 2000. So, this year is likely the breakout year,provided the pattern stays true to the original one.

Bitcoin

Below is a long-term chart of Bitcoin:

Bitcoin consistently rallies afterimportant DXY (dollar index) peaks. This time will be no different. The minimumtarget for this rally is around $138k. The alts (other major crypto currencies)are more likely to outperform Bitcoin during this rally.

For more of this kind ofanalysis, I have a Premium Service as well as a  Silver Fractal Analysis Reportthat provides more insight regarding the gold and silver markets.

Warm regards,

Hubert

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

http://hubertmoolman.wordpress.com/

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

© 2024 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.