Silver is copying the Bull Market in Gold from 1976-1987

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