The Cycles Of Silver

The financial crash of March allowed silver to go to make its pull-back on the resistance, which came from the summit of 2011, and had been crossed on June 18, 2019.

This pull-back was made on the point of convergence of all the oblique resistances, as the chart shows it. This was a MAJOR key point.

The low point was made on the Moving Average at 363 Months (MA 363M)… therefore on the Mobile Average of 30 years and 3 months.

Gertrude Shirk, who is considered as one of the early pillars of the US Cycle Studies Foundation, had anticipated the date of the high point of silver in 1980.

For her, silver follows cycles of different amplitudes, 30 years, 9 years and 5 years.

On the weekly chart, but also in the monthly, we can see that the $ 20 level was fiercely defended in 2019 as in 2016 and 2008.

The passage of this level should be approached in the days to come, while different markets, including that of stocks on Wall Street will undergo a period of strong turbulences.

Despite these ups and downs, I nevertheless consider that silver has started its strong rising leg, which in the months to come will make it exceed its historic highs.

Remember this Elliottist chart from the beginning of 2019, showing that the movement of the past 12 years is a repetition on a larger scale, of the movement of the years 1997-2011.

This is the principle of Mandelbrot fractals.

If necessary, the resistance having already been overcome and the pull-back having been made in March, we should experience a direct push beyond the 2011 peak at the end of the first quarter of 2021.

Which brings us back to my chart made in August 2019, where I considered that prices replicated the surges of the price of silver from 1972-1974.

I already expected a strong push upwards, bringing prices to $ 65 in February and May 2021.

Then there will be a consolidation, which could be shorter than in the previous cycle, before the resumption of very high price inflation, which should bring silver to nearly $ 500 an ounce.

In reality, the expected surge in gold and silver prices from 2021 to 2023 is irresistibly reminiscent of 1921-1923 and the hyperinflation of the Deutsche Mark of the Weimar Republic.

This promises us a difficult time for the whole population to live with currencies that will lose their purchasing power, causing extreme poverty.

Continue to focus on real physical silver. There will be very happy surprises in store for you.

What about gold?

The March stock market crash caused gold to fall sharply.

Gold thereafter quickly rose to 1,743 before consolidating into a flag.

This flag has formed a triangle since April 9, the courses playing ping-pong between oblique converging support and resistance .

The resistance had been broken last Thursday and prices returned to 1780 before consolidating a little.

There is an upside potential in 1850 until the resistance of the megaphone… if this figure is about to be played….

There are always several possible scenarios in the charts.

The rally on Wall Street's stocks could continue, fueled by monetary injections from the Federal Reserve. Companies could continue to borrow, almost for free, to buy-back their own stocks. American companies are encouraged by the fact that the management teams have an incentive in the form of purchase options. When stocks go up, options fly upwards like calls, enriching the managers of the company. If this policy continues, Wall Street will turn into the Caracas Stock Exchange, which rises endlessly to infinity and beyond.

In this case, gold will go up much faster than any stock.

Nevertheless, I would not be surprised to see a second strong drop leg at Wall Street in the days and weeks to come.

Therefore, gold could briefly drop back, as it did during the crash of March 2020.

But don’t worry, if you are in physical gold.

Once the low point will be reached, gold will directly go back up and beat its historic highs. The rise will continue to new heights, which will not cease to surprise observers.

Clearly, the closure of the gold, silver and copper mines for two months is expected to have a significant impact on gold and silver-paper markets. We expect to witness a great financial battle in the coming weeks.

Precious metals will be the great winners.