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Silver: “You ain’t seen nothing, yet” – Fractal Analysis

Fractal analysis charts suggest that silver could push up to around $150. Yet, there are both higher and lower potential price targets to consider.

by Goldrunner, MineWeb.com

The Fractal Silver Chart from the late 70′s is a bit different than today, mostly due to the effect that the deflationary psychology of the current period has had on Silver as a partly “economic metal.” This means that the chart of Silver has been much more volatile, especially in downside corrections compared to the late 70′s charts. The Silver parabola is a less fluid form than the Gold parabola with Silver making sharp vertical rises along the way. The Gold and Silver parabolas are driven by the flows of Dollar Inflation to Devaluation, yet big money and Central Banks mostly invest in Gold. This leaves Gold’s little sister, Silver, more prone to volatility and to speculation. This fact can create an advantage for Silver investors.

THE 70′S SILVER BULL

The first chart is an arithmetic chart of 70′s Silver. I have placed a blue angled line under the first portion of the late 70′s Silver Bull to show that Silver ran in an angled channel before its first thrust up to and above the 1975 high – the then historic high. I have drawn a green circle around the move up to the old high which likely corresponds to Silver’s run up in 2011 to the old 1980 high. Yet, going forward this creates “timing issues” compared to Fractal Gold so the red circle might fit the timing of the current point in the Silver Bull, better. The sharp rise out of that red circle appears to fit the type of move that we expect Gold to make, soon, based on the fundamentals where the Fed has already printed over $1.3 trillion while the markets have not yet devalued the US Dollar. At this point in the 70′s Gold appears to have doubled its log channel which is more in tune with the “1st sharp price expansion in 79″ as noted on the chart.

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1 comment to Silver: “You ain’t seen nothing, yet” – Fractal Analysis

  • Ed_B

    “The sharp rise out of that red circle appears to fit the type of move that we expect Gold to make, soon, based on the fundamentals where the Fed has already printed over $1.3 trillion while the markets have not yet devalued the US Dollar.”

    Perhaps not in official terms but in personal terms, how are the prices of food and fuel looking to you these days? Let’s see… gasoline is up more than 100% in the past 4 years while food is up about 70%. Hmmm… looks good.. IF you have plenty of money. If not, then you are definitely SOL.

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