"No warning can save people determined to grow suddently rich" - Lord Overstone

  • 12 mins China’s Soft Power Grab May Be Bad News For Emerging Economies
  • 16 hours The Secretive Wall Street Firm Betting On Bitcoin
  • 17 hours ‘Data Is King’: The Oil Industry’s Next Most Valuable Resource
  • 18 hours Google Invests $300 Million To Combat Fake News
  • 19 hours Zuckerberg Dodges A Bullet As Facebook Loses Billions
  • 20 hours Tesla Tumbles As Investors Lose Patience
  • 21 hours Are Alt-Coins On The Verge Of A Break Out?
  • 23 hours What Should Gold Investors Expect From The New Fed Chair?
  • 1 day Who Will Pay For Trump's $60 Billion China Tariffs?
  • 2 days Vladimir Putin’s Mysterious Fortune
  • 2 days Cryptos Resist Social Media Crackdown
  • 2 days The Death Of Dodd-Frank
  • 2 days Bitcoin Bounces Back Ahead Of G20 Meeting
  • 2 days Trump's Trade War Nears Boiling Point
  • 2 days Will April Be A Turning Point For Precious Metals?
  • 2 days Economic Pressures Weigh On Banks And Borrowers
  • 2 days U.S. Political Uncertainty Keeps Stock Markets On Edge
  • 3 days Gold: The Religion Of Currency
  • 4 days Economists Polarized On Trump’s Tariff Plan
  • 5 days Why Are Investors Overlooking Gold Stocks?
What Killed Toys ‘R’ Us?

What Killed Toys ‘R’ Us?

In another blow for America’s…

Economic Pressures Weigh On Banks And Borrowers

Economic Pressures Weigh On Banks And Borrowers

Banks and borrowers are under…

Silver Peak Likely Only After Dow Crash and Major Bottom

Last year, I produced the following chart and commentary (italics) to show how the Dow could crash like it did in 1929:

Dow Jones Industrial Average Monthly and Weekly Charts Chart
Larger Image

Above, is a fractal comparison between the current period (1998 to 2015) and the 1920/30s, for the Dow (charts from tradingview.com). Follow the two patterns marked 1 to 5. I have also indicated where silver peaks and bottoms occurred, to show that both patterns exist in similar conditions. This means that there is a strong likelihood that the crash will occur.

If the Dow peak is in (at point 5), then it could free fall soon, much like the October 1929 crash. This could be the greatest Dow crash ever. Therefore, the greatest silver rally could be on its way (why?)

Here, I would like to add a little more.

Notice how the Dow peaks at point 3 (in both charts) came relatively close to a silver peak. Furthermore, notice how the Dow bottoms at point 4 (in both charts) came relatively close to a silver bottom. This shows that silver, and the Dow have been roughly moving together during those relevant periods (in the 20s &30s and the current pattern).

However, after the third silver peak shown (on both charts) there was a big divergence between silver and the Dow. For example, while the silver peaked in 2011, the continued to rally until 2015. See chart of the current pattern to illustrate the moving together and the eventual divergence, below:

Weekly Silver Chart
Chart form barchart.com - note the Dow is the blue chart and silver is the green & red one

The divergence is what should be expected, since silver and the Dow actually moves in opposition in the long-term (contrary to what many believe). This adds to the likelihood that the fractal in the first chart is valid.

So, what significance does this have for the silver price in the future? It will help to determine when silver is likely to peak during the coming silver rally. Based on the fractal analysis on the first chart (above), silver is only likely to peak some time after the next major Dow bottom.

Warm regards,


For more of this kind of analysis, you are welcome to subscribe to my premium service. I have also recently completed a Long-term Silver Fractal Analysis Report.

"And it shall come to pass, that whosoever shall call on the name of the Lord shall be saved"


Back to homepage

Leave a comment

Leave a comment

Sign Up For The Safehaven Newsletter