Saturday , 3 December 2016


Silver Has Bottomed & Is On Its Way To $35/ozt.

Silver looks like it has bottomed and will move substantially higher.  Silver BarsHere’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.

J-SIGC Ratio

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.

J-SI-Nat 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:

  1. 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.
  1. 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.
  1. 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?
  1. 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.

J-Silver-weekly

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.

The above article has been edited by Lorimer Wilson, editor of munKNEE.com (Your Key to Making Money!) and the FREE Market Intelligence Report newsletter (see sample here – register here) for the sake of clarity ([ ]) and brevity (…) to provide a fast and easy read.

*http://deviantinvestor.com/7401/green-light-silver/

Related Articles from the munKNEE Vault:

1. Anticipating $200-$400 Silver Is Ridiculous – But What If…?

$200 or $400 silver is outrageous when we think in terms of today’s dollars, euros, and yen but what if…

2. Silver: The Numbers Say the Bottom Is In!

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.

 

 

3 comments

  1. depression you dont sell.
    You sell what cannot be flight capital: coal, iron, petroleum, etc. or mining shipping stocks and junk bonds which will be in even less demand than gold.
    You hold flight capital and you even profit by selling depression affected stocks. Your equity is stable.

    If the depression ends without war or revolution you determine at what price you cover your short positions. The rest is merely detail.

    You never know the future. You always prepare for it.

  2. Sooner or later, those with Physical Silver will suddenly find that their Physical Silver has a much higher value than Paper Silver. You can’t make anything out of paper Silver (except Silver Shorts), so at some point, everyone will awaken to a sudden “re-evaluation” in the price of Physical Silver. When that occurs, the PM market will explode upward, as all those with either no PM’s and/or those with paper PM’s try and reposition themselves into Physical PM’s.

    If China can “reevaluate” its currency, then “reevaluating” Physical PM’s is also possible, especially when those that have the most physical PM’s have the most to gain.

    Got Physical PM’s?