• 14 hours Coronavirus Could Cost Tourism Industry $80 Billion
  • 18 hours What Web Traffic Trends Can Tell Us About The World
  • 22 hours Miners Face Greater Headwinds
  • 2 days Boris Johnson Proposes Billion Dollar Bridge To Northern Ireland
  • 3 days Goldman Slashes Oil Price Forecast By $10
  • 4 days Tesla Raises $2 Billion In Share Selloff
  • 5 days What The T-Mobile Takeover Of Sprint Really Means For Markets
  • 5 days The U.S. Has Charged Huawei With Racketeering And Conspiracy
  • 5 days How Hydrogen Could Become The Fuel Of The Future
  • 6 days Millennials Can’t Retire, But They’ll Still Have To Help Their Parents
  • 6 days This Gold Miner Just Increased Its Dividends By 40%
  • 6 days Airbnb IPO Under Threat As China's Economy Drags
  • 7 days The Infamous Equifax Hack Just Became A National Security Issue
  • 7 days BHP Takes The Crown As World’s Top Copper Miner
  • 7 days Tesla Reopens Chinese Factory After Coronavirus Scare
  • 8 days Armed Troops Storm El Salvador’s Parliament
  • 8 days Is A New Housing Bubble Forming?
  • 8 days The Biggest Challenge Facing West Africa's Single Currency Plan
  • 8 days Iran's Space Program Hits Another Snag
  • 9 days The Politics Of Love In The Digital World
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…

What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

  1. Home
  2. Markets
  3. Other

This Suggests That Silver Will Soon Spike Significantly Higher

The silver price and the US Dollar/South African Rand exchange rate (USD/ZAR) have a very interesting relationship that goes back a long way.

Basically, in the long run, the two move in opposite directions. When the USD/ZAR rate is moving up, then the silver price is moving down, and vice versa. Furthermore, when the USS/ZAR rate is making a top, then a bottom in silver is normally very close (before or after the USD/ZAR peak).

Due to the nature of this relationship, I find that the USD/ZAR chart is often a leading indicator for a silver bottom as well as a silver rally.


Then – It signalled the bottom

Earlier this year, the USD/ZAR chart signalled the fact that the December 2015 low in silver was actually the bottom for the 5-year decline. This, from my February 2016 premium service (in italics):

Below, is a comparison showing the relationship between USD/ZAR peaks and silver bottoms:

USD/ZAR peaks and    silver bottoms
Larger Image

On the chart (from tradingview.com), I have drawn blue lines at the 2001, 2008 and potential Jan 2016 USD/ZAR peaks. One can see how close to these peaks the 2001, 2008 and potential Dec 2015 silver bottoms were.

Given, the look of the Jan 2016 candlestick; it is likely that the USD/ZAR chart has peaked.

If it has indeed peaked, then there is a very strong likelihood that the December 2015 bottom in silver is actually the bottom since the 2011 peak. It is interesting to note that there is a 7-year interval between the silver bottoms.


Now - it signals a rally similar to that of August 2010 – April 2011

Below is a USD/ZAR chart from 2004 to 2016 (from tradingview.com):

USD/ZAR 2004-2016 Chart
Larger Image

On the chart, I have marked two significant peaks (October 2008 and January 2016). Silver also made a significant bottom around the same time during both peaks. The USD/ZAR had a significant breakdown in July of 2010 as indicated. This was followed by a significant silver rally that really  took off around the end of August 2010.

The USD/ZAR chart recently had a similar breakdown as indicated. This tells me that silver will soon spike significantly higher. This fractal analysis of a previous article also suggests that silver is close to a significant spike.

Warm regards,

 


For more of this kind of analysis, you are welcome to subscribe to my premium service. I have also recently completed a Gold Mining Fractal Analysis Report as well as a Silver Fractal Analysis Report.

 

Back to homepage

Leave a comment

Leave a comment