Silver looks like it has bottomed and will move substantially higher. Here’s why.
So says Gary Christenson (deviantinvestor.com) going on to say in further edited excerpts from his original article*:
Long Term – 25+ years: Examine the silver to gold ratio since 1990. The ratio is currently low and appears to have bottomed. Silver bottoms when the ratio bottoms. Expect a multi-year rally.
Medium Term – 15+ years. The U.S. national debt is huge, moving higher, and has effectively zero chance of stabilizing or decreasing in the next decade…Examine the chart [below showing]…national debt and silver prices for the past 15 years. Silver prices will “catch up” with the drastic increase in national debt.
Silver prices erratically follow national debt higher. Long term charts of debt versus silver since 1913 and 1971 (not shown) clearly demonstrate…[that] relationship. Questions:
- Do you expect U.S. national debt, global debt, and other sovereign debt will decrease without a massive debt default? I don’t – debt will increase.
- If the world continues on its current “borrow and spend” path, do you expect silver prices will reverse their 100 year correlation with debt, spending, and currency in circulation? I don’t – silver prices will increase substantially.
- If the world economy collapses into a deflationary depression and $100 Trillion in global debt defaults, would you rather own physical silver, dodgy fiat currency, or paper debt?
- If the world economy collapses into a hyperinflationary disaster, on the other hand, would you rather own physical silver, increasingly worthless paper currency, or paper debt?
Multi-year Term: Examine the graph [below] of weekly silver prices. Silver prices are low and have broken the long term descending resistance line. The next targets are the upper horizontal band at about $19.15 and then about $35.
Short Term: The High Frequency Traders are overly influential in the short term gyrations of COMEX paper silver prices…[and] will push paper silver prices wherever is best for them, but real silver prices are moving upward.
I see a green light for substantial silver price increases in the next several years.
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Statistically speaking, silver is a very strong buy. With a recent selloff of 28%, the numbers strongly indicate that the bottom has been reached. In fact, if the past is to be even a slight guide to the future, silver may double over the next 2 years. This is what happens on average. In other words, it’s time to buy silver.