COMMODITIES

Hubert Moolman on SafeHaven.com takes a historical look at how the two most significant nominal peaks of the Dow—in 1929 and 1973—both served as indicators of future silver rallies. Hubert stresses this is important for the white metal moving forward, given that the Dow is currently forming a significant top.

It is good news for silver investors when significant nominal peaks of the Dow are formed. This is because significant nominal peaks in the price of silver tend to come after significant nominal peaks in the Dow. This has been the case for the last 90 years at least.

The two most significant nominal peaks of the Dow were in 1929 and 1973. Silver made a significant peak in 1935, about six years after the Dow's major peak in 1929. Again, in 1980, silver made a significant peak, about seven years after the Dow's major peak in 1973.

Below is a graphic to illustrate how the 1973 Dow peak was followed by a silver rally that eventually ended in 1980:

chart
Click to Enlarge

chart
Click to Enlarge

The Dow is currently forming a very significant top, with a current peak having formed in May 2015. If the 2015 Dow peak is the ultimate top, then we could possibly expect a major peak in silver, towards the end of this decade, to early next decade. This means we are likely to have rising silver prices for many years to come.

Most of the money fleeing the stock markets will be going into the silver and gold market, especially since—at the same time—there is a major debt crisis which is causing people to question debt-backed assets such as fiat currencies.

Economic decline (which is in the process of happening) is the main trigger for the coming economic events. When there is economic decline, there is reduced expectation that debts will be paid (This is why the stock market collapse is such an important signal for the coming silver rally). Debt is then considered very risky (this include all fiat currencies) and accordingly will be devalued.

In other words, when money is fleeing the stock markets, most will go into silver and gold instead of cash or bonds. To see the last chart and read the entire article, click here…

By Hubert Moolman, Contributor,  SafeHaven.com

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