Silver Price Breakout Has Begun

Silver and gold both finished this past week’s trading well. 

Each having tremendous runs since their brief spot price crashes in mid-March 2020 much assisted by ongoing fiat ∞QE policies running rampant.

Gold closed this week higher than it ever has in nominal fiat Federal Reserve notes. 

Yea, the same alleged money units that have lost now negative -98.9% to gold bullion coin, ever since the private central bank usurped the monetary reins of our Constitutional Republic (in the year 1913).

Silver has been on a tear as of late too, leaving many wondering if this is the start of the eventual valuation breakout at long last. 

This week we'll look at the charts, and at what some respected technical prognosticators are saying about the two precious monetary metals in the coming short term. 

The spot price Gold Silver Ratio is now back at levels we were at before this viral economic lockdown, and prior to this infinite QE and financial coup ongoing. 

While the US Mint's American Eagle Bullion Coin physical Gold-Silver bullion coin ratio is right around 63 at the close of this week.

To finish, I want to give you a longer-term road map based on current tech stock and fiat currency value bubbles versus humbly priced store of value silver.

After the Nifty 50 stock bull market era of the 1960s, the stock market got's its valuation head handed to it by silver, an absolute face-ripping run from 1976 to early 1980. It peaked when 20 ounces or say a mint tube of Silver Eagle coins could buy the entire Dow Jones.

The cherry-picking, company rotating index known in short as the Dow (DJIA) currently stands just under 26,500. Divide that by 20 Silver Eagle coins and now perhaps you understand how crazy some commodity bubbles can get going the other way.

Now we are not saying we are one day going to go back to 20, but sub-200 judging by that chart's look, either later this decade or into the next. I'd take some of that bet given the record corporate debts being issued post-COVID crash. 

Now, let’s look at this M2 fiat Federal Reserve note currency bubble versus sound money silver relatively within human lifetime's past. 

Very similar to the inverse of what we just looked at with funny fiat bubble stocks still keeping the Dow at lofty levels. Instead of a mere few dominating tech stocks that may get hammered with Anti-Trust laws in the coming decade, this chart above deals with infinite ∞QE policies ongoing versus a finite precious monetary metal that even children know is more money like than mere paper nor digital credits.

Say we move back to the 2011 level on that chart, that's a 4 to 5 bagger from here. We're talking about triple-digit silver by then (based on rigged inflation data for the last 4 decades, it is completely understandable why many believe new Silver Price Highs are not far from now).

Say we go back towards the 1980 level on that Silver vs fiat $USD M2 chart, well then you might be very bet on silver from here to there.

Of course, this will not be a straight line, but it's clear to say now. The breakout has begun. Get ready to ride this bull, and have you and your progeny benefit from some of the bets that you have and may soon make.

That is all for this exciting week in the monetary precious metals. Don't sleep on platinum prices nor platinum bullion out there. We will again speak to that super rare precious metal's valuation proposition soon enough.

For now take great care of yourself, and those whom you love.

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James Anderson
James Anderson
Senior Market Analyst & Content

A bullion buyer years before the 2008 Global Financial Crisis, James Anderson is a grounded precious metals researcher, content creator, and physical investment grade bullion professional. He has authored several Gold & Silver Guides and has been featured on the History Channel, Zero Hedge, Gold-Eagle, Silver Seek, Value Walk and many more. You can pick up Jame's most recent, comprehensive 200+ Page book here at SD Bullion.

Given that repressed commodity values are now near 100-year low level valuations versus large US stocks, James remains convinced investors and savers should buy and maintain a prudent physical bullion position now, before more unfunded promises debase away in the coming decades...