Get Your Physical Silver…Dow About To Crash Like October 1929?

October 1, 2015

Significant nominal peaks in the price of silver tend to come after significant nominal peaks in the Dow. This has been the case for the last 100 years at least.

It is no coincidence that significant silver rallies follow after significant Dow rallies end, as I have explained before. It is simply a natural reaction to what caused the stock market rally as well as the effects of that rally. So, if it happened before, it will certainly occur again.

These stock market rallies are driven by the expansion of the money supply, causing a big increase in value of paper assets (including stocks) relative to real assets. When the increase in credit or the money supply has run its course, and is unable to drive paper price higher; value then flees from paper assets to safe assets such as physical gold and silver, causing massive price increases.

We may have reached such a point in time:

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.

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

Peru became the world’s largest producer of silver in 2012.

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