Silver And The Coming Monetary Reform - BullionBuzz - BMG

Silver And The Coming Monetary Reform

The comments below are an edited and abridged synopsis of an article by Hubert Moolman

An examination of two comparable economic cycles spanning the past century unveils intriguing insights into the role of silver amid an impending correction and reset of the monetary system.

Silver And The Coming Monetary Reform - BullionBuzz - BMG
1 kilo 999 fine silver bar

The analysis delves into long-term silver charts, tracing the metal’s performance within distinct cycles that commenced at significant gold/silver ratio bottoms in 1919 and 1979 respectively. Early on, both cycles witnessed peaks in interest rates (1920 and 1981), signaling a prolonged favourability towards debt-based assets while casting a shadow over precious metals like gold and silver.

As the cycles progressed, the Dow/gold ratio reached its zenith, indicating the impending conclusion of the downtrend for tangible assets such as gold and silver, heralding an anticipated uptrend in both real and nominal terms.

Within each cycle, silver reached an extreme nadir at point 1 (1932 and 2001), following the peak of the Dow/gold ratio. Subsequently, from the 1932 silver bottom, a prolonged bull market ensued, culminating in early 1980. Similarly, the current cycle commenced a major silver bull market in 2001, potentially poised to conclude around a significant interest rate peak.

At present, the ongoing cycle finds itself several years beyond a crucial juncture: the major interest rate bottom in March 2020. This pivotal moment bears semblance to the analogous point in the preceding cycle, which transpired circa 1941, coinciding with the trough in yearly interest rates on US Treasuries.

This inflection point is of paramount importance in the cycle, delineating the trajectory wherein debt and debt-based assets face erosion while the silver price surges exponentially. Emphasizing the reliance of the current world on debt or credit, this juncture assumes heightened significance.

The salience of this turning point will be accentuated and validated upon the occurrence of the anticipated collapse and reset of the global monetary system, a topic extensively discussed in recent articles on the Monetary Reset blog.

Given the staggering levels of indebtedness, the vulnerability of the world monetary system looms large. Understanding the pivotal themes at play becomes imperative in preparing for the impending upheaval that may soon sweep across the globe.