Silver Price Forecast: Boom Time?
Silver Price Forecast: Boom Time? by Hubert Moolman – Gold-Eagle
Previously, I have shown how conditions in the financial markets are very similar to that of the early 80s (circa 1983). Basically, the Dow was at a start of a long-term rally around 1983, and silver just broke down and entered a long-term bear market.
However, as I have predicted in that article, we would likely see a divergence, despite the similar conditions. Normally, when such a divergence occurs, then one gets a massive move in an opposite direction to the pattern or period compared to.
In this case, as you will see below, it is silver that will make a big move up, and continue its bull market, instead of going into a bear market, like it did in 1983:
On the chart, I have marked two patterns 1 to 5, to show how the current period is similar to the period circa 1983.
If the comparison to the 1980s pattern is justified, and the current pattern continues in a similar fashion, then silver prices will go into a long bear market. However, as I have said previously, there are just too many fundamental obstacles to such a scenario, since silver appears to be ready for the next phase of the bull market which started around 2001.
It now appears that silver has, in fact diverged from the 1983-pattern, by bouncing off the red line (instead of breaking down). It now appears poised to move much higher. A breakout at the top red line, and you will never see it again at these low levels.