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The Dow points to higher silver prices for years to come

Commentaries & Views

The Dow is at, or very close to a 90-year resistance line:

Could a top be in, or is it extremely close? What I do know, from my own research, is that major Dow peaks are extremely important when it comes to Silver rallies.

The best part of Silver rallies often come after major Dow peaks, and can last for years.

Below, is a another long-term chart of the Dow (with a Silver chart at the bottom):

I have done a type of cycle analysis to show how major Silver rallies interact with the Dow.

Historically there is an established pattern of credit extension, during which the Dow benefits proportionally more than Silver prices do. Once the Dow’s rally has run its course, Silver prices catch up while the Dow corrects or goes sideways.

The last major Silver rally was in the 70s. This came after a 40.5 year Dow rally from July 1932 to January 1973. In the chart above, one can see how the best part of the 1970s Silver rally came after the Dow’s nominal peak (the last major Dow peak).

After the great Silver peak in 1980, the Dow started a new cycle, and has been rallying for about 40 years. It is very likely at, or close to a new major nominal peak. This bullish outlook for Silver really supports the likelihood of a Dow top being in, or very close, when one considers the theory above.

Based on this analysis, it could be a great time to still accumulate Silver - much like it was in early 1973.

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

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