I actually used this analogy from 2002 to 2012 to lay out why silver would go up in value dramatically since it was tracing out the pattern of the technology-driven bull market in gold. If you take a moment to reach Jim Roger's chapter in Jack Schwagers book on Market Wizards, you will read all about how gold was actually driven up by technology uses of gold, much the same as the way silver is used today.
Note the similar chart patterns: The big rally followed by a 50% decline ... a creeping rally that forms a triangle... then a blast off period which goes 8 months in silver and 9 months in gold. Silver advances about 4.5 times in value and gold advances about 6.4 times in value (note the way I calculated was to count to the highest monthly low, not to the highest high).
After the high there is a retest of the apex of the consolidation before another rally attempt is made.
I think we are on the verge of another jump in silver.
Enjoy -
Tim 2:40AM EST 7/15/2014 20.88 Silver last
Comments
PapaAboo
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This is great!!
timwest
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Thanks VladimirGas. I hope I can keep pointing out low-risk and high-reward trades and investments. If we go back and read the headlines from 1985-1988 in Gold, it might be interesting to see if the news correlates at all. Also, it would be interesting to see what the newspapers were saying about Gold in late 1984 when it was tanking into year end. The news must have been pretty bleak with plenty of bears and an obvious "bear market" right as the new uptrend was about to launch.
manijeh.kazemi.33
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thanks for sharing best of louck
timwest
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Silver chart should have been next to the chart of gold. Hmm.. Sorry it didn't publish...