• 288 days Will The ECB Continue To Hike Rates?
  • 288 days Forbes: Aramco Remains Largest Company In The Middle East
  • 290 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 690 days Could Crypto Overtake Traditional Investment?
  • 694 days Americans Still Quitting Jobs At Record Pace
  • 696 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 699 days Is The Dollar Too Strong?
  • 700 days Big Tech Disappoints Investors on Earnings Calls
  • 701 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 702 days China Is Quietly Trying To Distance Itself From Russia
  • 703 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 706 days Crypto Investors Won Big In 2021
  • 707 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 708 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 710 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 710 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 713 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 714 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 714 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 716 days Are NFTs About To Take Over Gaming?
How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

Strong U.S. Dollar Weighs On Blue Chip Earnings

Strong U.S. Dollar Weighs On Blue Chip Earnings

Earnings season is well underway,…

  1. Home
  2. Markets
  3. Other

Silver Price Extremes!

To identify "buying opportunities" in "extreme" situations, we identify historical extreme situations and use them for a benchmark. Provided that a correction occurs in an active bull market, the insights from this kind of analysis can be very helpful.

Most should agree that the credit crisis was a major economic event that pushed nearly all assets down to an extreme low. We have used this kind of extraordinary market action as a comparison for the current commodities correction.

Silver Cash Price

In the above chart we simply measured the percentage drop of the current correction and compared it to the extreme drop back in 2008. Based on this chart it is safe to say that the current correction could be considered extreme.

Silver Cash Price/Dow Jones Industrials

The above chart illustrates the two extreme corrections relative to the Down Jones Industrial Average. The above lines are a ratio of the silver price divided by the Dow Jones, and we can see that the drop since August 2011 has been much larger than 2008. Using the drop following July 2008 as a benchmark, it appears that selling stocks and buying silver at this time may be a great opportunity.

Here are some other 2008 versus 2011, Dow Jones Industrials comparisons:

Silver and Gold Correlation to the DOW

In the above chart we can see many examples of the extreme correction since 2011. The current drop from top to bottom (2011-2014) even exceeds the Credit Crunch of 2008 & 2009. When silver hit a low of $8.88 in 2008, it then climbed over the next couple of years to an impressive price of $48.70. Using the past as a guide, it may make sense to sell some Dow Jones Industrial Average (Stocks) and buy some precious metals related investments.

 


To learn more, visit our website and sign up for our free newsletter at www.investmentscore.com.

 

Back to homepage

Leave a comment

Leave a comment