Silver Price Forecast: US Dollar Breakdown Clears The Way For A 70s Style Silver Rally

May 17, 2017

The apparent breakdown of the US Dollar Index is setting silver up for a spectacular rally. In fact, it could rally like it did in the late 70s. Below, is a long-term chart of the US Dollar Index:

On the chart, I have marked two fractals (1 to 3). Both fractals exist in similar conditions – relative to the relevant Dow/Gold ratio peaks (1966 and 1999), as well as Dow peaks. Both fractals span over the period of the first phase of the silver bull market during the 70s and the current era (2001 to 2017), respectively.

If the comparison is justified, then the US Dollar index will fall significantly during the coming months. Given the fact that silver has traditionally had its strong rallies during times when the US Dollar Index was falling, this bodes well for a silver rally.

However, it is important to note that a meaningful silver rally is dependent on whether the March 2017 peak is the actual peak for the Dow Index. If it is not, then we will have to wait longer.

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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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Hubert Moolman is a self-taught gold and silver analyst who writes a precious metals newsletter specializing in fractal chart analysis and monetary fundamentals (especially gold and silver). He has a background as a Chartered Accountant, and managed his own firm for 9 years. He also has a website that publishes educational articles on gold, silver and the dangers of fiat money. 

The melting point for silver is 961.93 °C - 1235.08 °K