The current silver bottoming process, albeit longer, is very similar to that of 2001 to 2003…[Back then that base] set up a bull rally that continued until 2011….The USD is making its last attempts to go higher before experiencing a major decline and when that decline starts (which is likely to be soon), the silver price will take off in a big way.
This version of the original article, by Hubert Moolman, has been edited* here by munKNEE.com for length (…) and clarity ([ ]) to provide a fast & easy read. For the latest – and most informative – financial articles sign up (in the top right corner) for your FREE bi-weekly Market Intelligence Report newsletter (see sample here)
Below, is a chart which shows the similarity:
I have marked the two patterns (1 to 5) to show how they are similar. The current bottoming is coming to an end, and now a breakout of the top line of the triangle will confirm the validity of the comparison.
There also other fundamental similarities compared to the same period. The behaviour of the US Dollar index is an important one of them. #munKNEE.com being given away – Check it out!
Below is a comparison of Silver and the US Dollar index chart:
See how the bottoms and tops of the respective charts line up. Last year, when the US Dollar index was in decline (between the two dotted red lines), silver failed to rise. This was also the case in 2002 (see between the two red lines). However, when the US Dollar continued into a deeper fall (after the two red lines), silver eventually started to rise significantly.
The Dollar is currently making its last attempts to go higher, before we will see a major decline. When that decline starts (which is likely to be soon), the silver price will take off in a big way.