Silver Premium Update (Silver Price Forecast) 19 March 2012

Silver Premium Update – Silver Price Forecast
By Hubert Moolman
19 March 2012
Silver has made its way out of the giant flag; however, it fell back again, lower than the upper boundary of the flag, as shown in the following chart:

Previously, I have stated that price will eventually break out of the flag and go on to make much higher highs. This is still my expectation, and here, I would like to present some more evidence for this view.
Where is silver going now?


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Analysis of the Long-term Silver Chart

Silver Forecast: Silver Premium Update

February 10, 2012

Silver Forecast: Is Silver Outperforming The Gold Fractal?
Below, is an extract of my Silver Premium Update for 25 January 2012:
Since my last silver articles (here and here), the silver chart has been following the patterns, I have been tracking, quite nicely. Below is an updated version of the gold vs. silver fractal:

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Silver And The Shift To Measuring Wealth In Ounces Instead Of Dollars

Silver Price Forecast And The Shift To Measuring Wealth In Gold Ounces Instead Of Dollars.

February 2, 2012

Silver Price Forecast:

The debt-based monetary system creates an illusion of wealth. It allows for claims on real goods to significantly exceed the actual amount of real goods. You then have a number of people believing they have wealth, since they have claims (pieces of paper or tokens) showing that they have these real assets, whereas, in reality, if everyone was to claim the real goods, there would not be enough to go around.
The high debt levels, in some way, represent the extent to which there are more claims than the actual underlying real assets.
During the period of credit extension – that has been for at least 80 years – most businesses are set up to take advantage of this system. The system allows for an easier way to increase wealth (illusionary), since only claims on real assets need to be increased, instead of the actual real assets.
As you come to the end of the credit extension cycle, most businesses are dependent on this credit extension, either directly or indirectly. When the debts become too heavy to bear (no one knows the day or the hour, but there are signs), the debt bubble will burst, and over time eliminate all those business opportunities brought about by the debt-based system, as well as the businesses dependent on it.

Gold Stocks To Rally Like During The Great Depression And Early 70s

By: Hubert Moolman


Below, is an extract of my Gold Mining Fractal Analysis Report.

“He answered and said unto them, When it is evening, ye say, It will be fair weather: for the sky is red. And in the morning, It will be foul weather to day: for the sky is red and lowering.”- Jesus Christ

During the Great Depression, at a certain point, gold stocks started a massive rally. While most things were going down in price, gold stocks made significant gains, becoming one of the best performing sectors during that time.

It was no coincidence that gold stocks performed as well as they did. Like all goods, gold stocks will thrive under the ideal conditions. During the Great Depression, those ideal conditions were present.

The purpose of this editorial is to look at what those conditions were, and identify a pattern that was present before and during those rallies. If we are able to identify those circumstances and pattern, we could look to see if they are present today, or in the future, in order to know when to expect a massive gold stocks rally. – end of extract.

I then go on to identify those ideal circumstances and patterns that were present before and during the great gold stocks rally. The conditions today are very similar to then, and is an ideal set-up for a most spectacular gold stocks rally over the coming months. Here, I would like to illustrate, by way of a chart, how the conditions were similar.

The gold stock rally of the 1930s coincided with major economic decline, as well as a significant increase in the real price of gold. Below, is a chart (from planbeconomics.com) of the long-term Gold/Oil ratio:

Silver Price Forecast 2012:I Stand By $140 Silver Price In 2012

Silver Price Forecast 2012:
There is a well-established relationship between how silver and gold trade. They often trade similar in the same time period, but also at similar milestones, although those milestones are sometimes reached at different times. This can cause silver or gold to be the leading indicator, depending on the particular milestone.
I have previously used this relationship to predict how silver will trade. Below, is an extract of that update:

Gold Analysis:Gold Bull Market To End In 2 Years At $6000 Or More?

Gold Big Picture – Gold Comparison Of Now Vs 70s Shows Big Rise In Price Yet To Come

Silver Price Forecast 2012: Silver’s 2011 Big Move – Was It The End Or The Beginning?

January 18, 2012 Leave a Comment

Silver Price Forecast 2012: Silver Likely To Make Explosive Move

The price of a good often behaves in a similar manner at or around the same kind of milestone. An example of such a milestone could be a significant top. Price often forms a similar type of pattern at different significant tops – different in terms of time of occurrence. This is a reflection of how market participants themselves often behave in a similar manner when faced with the same kind of situation. This of course makes perfect sense, since it is normal, for example, to rest after you have been extremely busy for a while. For most people, this is true whether it was yesterday, or in 20 years.

In the current silver market, there are some similarities as compared with the 1970s. There are also things that are much different today, in the economic landscape, compared with that of the 1970s. One of the significant things that is different now is the fact that debt levels, relative to GDP, are extremely high compared with the seventies.

In my opinion, this is one of the main reasons why we are likely to have a massive Depression this time around.

Here, I would like to illustrate how the silver price behaves in a similar manner, today, compared with the 1970s. Below is a graphic that compares the silver price chart of January 1978—August 1979 to the period from January 2009—present (charts generated at barchart.com):

Gold: Current bull market is a carbon copy of the 1970's bull market

By Hubert Moolman
Below, is a Gold alert sent to my premium subscribers, on 5 January 2012. The patterns indicated, suggest that we will have a massive rally in gold over the coming months.

Below, is a graphic that compares the gold chart from 1998 to present, to that of 1975 to 1979.

Silver: Are you ready to make profit in 2012

By Hubert Moolman
I presented the following chart, which indicated that Silver was at a major crossroads:

"This pattern on the silver chart has me convinced that silver will rise even faster than a lot of silver bulls are expecting. Let me give you an example of what is likely to come next, after this pattern. Below, is a comparison of the current pattern on the silver chart, and a similar pattern that was on the Gold chart in 2007:"

Fractal Analysis Suggests Massive Gold Rally Is Coming

By Hubert Moolman

Below, is a gold alert sent to my premium subscribers, on 5 January 2012. The patterns indicated, suggest that we will have a massive rally in gold over the coming months.

Below, is a graphic that compares the gold chart from 1998 to present, to that of 1975 to 1979.

Why Silver For A Monetary Collapse? Part 2

By: Hubert Moolman | Tue, Jan 10, 2012

In part 1, I stated:

"We are at the edge of a major economic crisis. Our monetary system is the underlying cause of this major crisis. The massive debt bubble created by our monetary system is about to burst. The demonetization of gold and silver, has over the years diverted value from these metals, to all paper assets (such as bonds) linked to the debt-based monetary system.

The process of the devaluation of gold and silver, started by the demonetization of gold and silver, is about to reverse at a greater speed than ever before. This is similar to what happened during the late 70s, when the gold and silver price increased significantly. However, what happened in the 70's was just a prelude to this coming rally. The 70's was the end of a cycle, this is likely the end of a major cycle; an end of an era of the debt-based monetary system (dishonest money)."

What this debt-based monetary system has done, is to create what I call a "mirror-effect", whereby, silver (and gold) is pushed down in value, to a similar extent as to which paper assets such as general stocks are pushed up in value. This mirror-effect clearly shows up on the long-term charts of gold, silver and the Dow.

Here (in part 2), I would like to show how this "mirror effect" of silver versus the assets linked to the debt-based monetary system (general stocks in this case), shows up on the long-term charts.

Dow/Gold ratio suggest a mega bull rally in gold is coming

By Hubert Moolman
For Gold to rise to levels significantly higher than the recent high of $1,920, a new impetus is needed. Without additional energy from such an impetus, gold could just trade sideways for a very long time, or even fall further. See the chart below.

There is only so much value in the world economy, and it is split between all the different instruments (like gold, silver, stocks bonds, etc.) where value resides.


For gold (and silver) to rise significantly, relative to other instruments of value, value will have to be diverted away from those other competing instruments. The printing of more money does benefit gold, but it does not necessarily benefit gold more than other assets-such as commodities, for example.