Guest Post: Silver Cycle Low – Now

I’ve reposted an article below by Gary Christenson of Deviantinvestor.com.  He offers compelling evidence that now is the best time 2001 to buy silver.

The price of silver has been crushed during the last four years.  Prices are ready to reverse.  We will know soon enough after the High-Frequency-Traders have their way with prices for paper silver and gold on the CME.  But consider:

Is there anything specific regarding silver, or is it just “hope and change?”  Yes!

Daily charts (not shown):  Silver hit its low about 2 weeks ago and has weakly rallied since then.  Most oscillators show that silver prices are deeply oversold and that momentum has turned upward.

Weekly charts (not shown):  Silver prices have closed higher for the last two weeks, and like the daily charts, oscillators are oversold and turning higher.

Anything more?  Yes!  Long term cycles indicate that silver has finally made a major bottom.  I have little faith in short term cycles because prices are so easily manipulated by HF-Traders, but longer cycles are more difficult to manipulate, and more meaningful.  When longer cycles align with other confirming evidence, it is significant.

Note the following chart showing monthly silver prices back 25 years to 1990.  All major lows in silver prices have been indicated by two long cycles – 82 months and 123 months (82 months times 1.5).  The red vertical lines show the 82 month cycles and the green vertical lines show the 123 month cycles.  click to enlarge:

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You can read the rest of this article here:

SILVER CYCLE LOW – NOW

 

8 thoughts on “Guest Post: Silver Cycle Low – Now

    1. I would not bet on it. I think gold might have seen a bottom, but silver is more of an industrial metal and deflation is pounding the prices of all industrial commodities. Remember, central banks do not hold silver for a reason.

      1. … meaning they can’t lease out bullion to the markets. In case of severe shortages this leads to silver (*gold on steroids*) leading gold.

  1. Pessimism..hmm it doesn’t help with that Dent character speaking rubbish. That dude is gonna burn “a lotta folks” Seriously bond holders will not be let fail,so how? freshly minted fake money. Exhibit A. Greece who got payed? These deflationary collapse people give it a break….gov will print take it to the bank.

  2. The silver chart looks terrible!!! And I don’t give a damn about cycles. These days every one is a specialist in cycles. Think Bo Baloney et al.

    1. I love Bo Fullabolony he provides a lot of laughs every few months.

      “oh, I miscounted the days in the last cycle, blah, blah, blah….”

      The ones that aren’t laughing are the ones who paid that charlatan thousand of dollars for wrong predictions.

      But Bo is laughing all the way to the bank.

  3. I am not overly concerned. Silver and Gold have intrinsic value. The Dollar has value until one fine day…it doesn’t. Just off the top of my head I can name several currencies that blew a whole through unsuspecting savers such as the Original Ruble, the Original Real, the Original Bolivar, the original Quetzal, Continental Dollars, Green Backs, U.S. States once had currencies, the confederate south once had several currencies, the Wiemar mark, on and on she goes what currency dies nobody knows. Never in any historical period that I am aware has Gold or Silver gone to zero. The world is once again in a heap of trouble. The internet has brought the lessons of the past into clearer view. I’m sure we’ll see our fair share of paper manipulation until Gold and Silver come back as a monetary anchor.

    That men do not learn very much from the lessons of history is the most important of all the lessons that history has to teach.”
    ― Aldous Huxley, Collected Essays

  4. I would not bet on it. I think gold might have seen a bottom, but silver is more of an industrial metal and deflation is pounding the prices of all industrial commodities. Remember, central banks do not hold silver for a reason.

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