The Silver Big Prize / Commodities / Gold & Silver 2020

We have to keep our eyes on the biggereconomic cycle. It helps in maintaining a proper perspective, and putting moreemphasis on the bigger prize rather than the day to day movements.

The historical relationship between silverand the stock market provides great insight as to where we are currently inthis cycle. Traditionally, the best part of silver rallies come after asignificant Dow peak.

From previous work I have shared, it is clear that silver is still extremely cheap, and should beaccumulated at these prices. The following comparison of silver and the Dowsupports this, and gives us the proper perspective regarding the biggereconomic cycle.

Below, is a comparison of Silver and theDow:

The Dow/Gold ratio peak (marked as D/G)helps to put the Dow chart in perspective, and here it marks the start of theindicated cycles.

There was a period of about 7 years from the1966 Dow/Gold ratio peak to the 1973 Dow peak (DP). The 2020 Dow peak cameabout 21 years after the 1999 Dow/Gold ratio peak.

We don’t know whether the Feb 2020 Dow peakis the top, but it does not matter for the silver medium- to long-term outlook.What matters instead, is whether the silver bottom (SB) is in.

Some years after the 1966 Dow/Gold ratiopeak, there was an important silver peak (SP) in 1968. This is matched by the2011 silver peak, which came about 12 years after the 1999 D/G.

Silver bottomed in November 1971 (SB) androse to a silver top (SP) in February 1974. The recent silver bottom in 2020 iscomparable to the 1971 silver bottom. We are therefore, likely in a move to anew all-time high just like the 1974 silver top, that will come after the Dowpeak (which is already in or could still come a little later – but it does notmatter).

We are still early in this rally, so wecould see a huge move (given how strong it started). This is the prize we haveto focus on.

It is interesting to note that the silverbottom (SB) in 1971 came about 3 years after the 1968 silver peak (SP), and thesilver bottom (SB) in 2020 came about 9 years after the 2011 silver peak (SP).This is actually roughly proportional in the same way that the 2020 Dow peakcame 21 years after the 1999 Dow/Gold ratio peak, which is 3 times longer thanthe 7-year period from the 1966 Dow/Gold ratio peak to the 1973 Dow peak.

The above scenario rhymes well with thislong-term silver fractal:

For more on this and this kind of fractal analysis, you arewelcome to subscribe to my premium service.I have also recently completed a Silver Fractal Analysis Report aswell as a Gold Fractal Analysis Report.

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

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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.

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