Silver and the Dow

Summary: While the gold and silver markets have been in turmoil, the Dow has yet again reached record highs. But much of this rally is being driven by expansion of the money supply rather than underlying value according to this analysis from SilverSeek. Once this rally runs out of steam and is unable to drive paper prices higher, investors will flee to something of real value, like gold and silver. The analysis goes onto to examine historical peaks in both the Dow and silver markets – two of the most significant peaks in the Dow occurred in 1929 and 1973, while silver peaked in 1935 and 1980. Both silver peaks occurred roughly six years following the peak in the Dow. Despite silver’s weakness lately, charts still show that it’s in a long-term “up trend” line. Read more…