Crafting such a bold title could become hazardous to my reputation since I am a conservative person. However, before you dust off the straight-jacket and have me committed, please take a few moments and consider the possibility.
This post is an enhanced version (i.e. not a duplicate) of the original by AG Thorson (GoldPredict.com) as it has been edited ([ ]) and abridged (…) by munKNEE.com to provide a faster and easier read. Enjoy!
Is $500 silver realistic? On the surface, it seems absurd. Nonetheless, I challenge you to…take a few moments and consider the possibility.
The 8-Year Cycle
Silver and most other commodities have a distinct cyclical presence; i.e. precious metals follow an 8-year cycle that tightly parallels the US Presidential election. The correction starting in 2011 has exhibited 12+ Month consolidations. Subsequently, prices break sharply lower (circles 1, 2 and 3). Our analysis supports prices breaking for a third time…ultimately leading to what will become the 8-year cycle low and sterling opportunity.
The Big Picture (quarterly) chart of silver below depicts an enormous Cup with Handle formation. A traditional Cup with Handle structure adds the depth of the right aspect of the bowl to the breakout point ($50), in this case, suggesting a $500 Silver price target! Note: The pattern’s Handle is retracing slightly more than desired, but overall it has developed nicely. A breakout above $50 will trigger the pattern and become incredibly bullish.
Is $500 silver realistic? On the surface, it seems absurd. Nonetheless, I challenge you to examine things in a different way. Consider everything it takes to produce just one ounce of silver…
Imagine shoveling, washing, and processing tons of material until you had enough for a 1-ounce coin — and then refine that to its purest form. Would all that effort, time, equipment, material, and expense be worth producing a coin that sells for a mere $15? Probably not!!
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