Clearly, we are in a parabolic move in gold, and silver looks very similar. A lot of people are going to stick their head in the sand and try and ignore this, but anytime a market does this, it’s setting up for a bubble phase and a crash. These always crash and usually they will come back down and test the breakout from where the parabolic move began. In this case, it would be roughly around the 2000s where the breakout occurred, maybe a little above that, $2100...
We’re about halfway through this 8-year cycle. At some point here we’re going to have to have the declining phase of the cycle, and it will be due to bottom in 2030. I suspect we’re going to top this year because we’re getting about almost four years into this 8-year cycle. So there’ll be an initial huge crash, people will try and buy the dip, you’ll get a bounce, and then you’ll start stair stepping down, and it’ll take surely a year or more to get to that final bottom, again that’ll be due in 2030...
Rather than taking 25 years to recover like the last one did, this one may recover much much faster. Once stocks enter a secular bear market then liquidity is going to look for someplace else to land on and it’ll probably land in the commodity market. So it may not take quite as long as what a lot of people would expect for a secular bear market in gold once this parabolic structure collapses.
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