Get the Big Prize for Silver
The comments below are an edited and abridged synopsis of an article by Hubert Moolman
Keeping an eye on the bigger economic cycle helps to maintain a proper perspective and emphasizes the bigger prize rather than day to day movements.
The historical relationship between silver and the stock market provides great insight as to where we currently are in this cycle. Traditionally, the best part of a silver rally comes after a significant Dow peak.
Silver is still extremely cheap and should be accumulated at these prices. A comparison of silver and the Dow supports this, and it gives the proper perspective regarding the bigger economic cycle.
The Dow/Gold ratio peak helps put the Dow chart in perspective, and it marks the start of the indicated cycles (chart included).
There was about 7 years from the 1966 Dow/Gold ratio peak to the 1973 Dow peak. The 2020 Dow peak came about 21 years after the 1999 Dow/Gold ratio peak.
We don’t know whether the February 2020 Dow peak is the top, but it does not matter for the silver medium- to long-term outlook. What matters is whether the silver bottom is in.
Some years after the 1966 Dow/Gold ratio peak, there was an important silver peak in 1968. This is matched by the 2011 silver peak.
Silver bottomed in November, 1971 and topped in February 1974. The recent silver bottom in 2020 is comparable to the 1971 silver bottom. We are likely moving to a new all-time high, just like the 1974 silver top, that will come after the Dow peak (which is either already in or will come a little later—but it does not matter).
We are early in this rally so we could see a huge move, given how strong it started. This is the prize to focus on.