Summary: Silver is currently sitting at just under 1/2 the price it was back in 2011 when it peaked at over $48. This fact alone is discouraging for the metal’s prospects, but a closer look at some historical data shows some interesting parallels between today and the last big bull market in the 1970s. For example, both bull markets started at a peak in the Dow-to-Gold ratio. When the 70s bull market ended in 1980, this ratio was at a historic low. If we compare price charts from the days of disco to now (below), we can certainly see similarities in the patterns. A similar situation occurred in 1974 when prices peaked then plunged. Many believed this was the end of the bull market, when in fact it was a consolidation/correction before moving higher once again. Even at the $48 peak in 2011, silver still hadn’t hit the high of early 1980. This analysis claims that as long as silver doesn’t fall too far below its 2008 peak of $21, the bullish pattern will remain intact. Read more…
Courtesy of Silver Seek