The Coming Restoration of Silver / Commodities / Gold & Silver 2019

The way I see it, silver has basically twomajor categories of use. The first and most important use is as a monetaryasset. It is only when used as a monetary asset that it could realize its true(or fair) value.

Currently, it is probably as far away (nottime wise though) from being used as a monetary asset, as it has ever been. Itis for this reason that silver is so under valued and such a must-buy.

The second is really all other uses that isstrictly non-monetary. This is how it is currently (materially) being used.Under this scenario it is just another asset that rises in price when excessivecredit (including money printing) is created.

You could loosely say that it acts like acommodity when used as non-monetary asset, and of course that it is money whenused as a monetary asset.

Now, silver will not just be willinglyrestored to being a monetary asset, and the masses won’t just go and buy allthe silver they can get just for the fun of it.

Instead, what is likely to happen is acollapse of the current debt-based monetary order will bring people back tousing silver as money (out of need for financial survival), as well as, stacksilver like they stack stocks, bonds and other major investment classes, inorder to protect against the fallout from the crisis.

Interest rates play a critical part inidentifying when the time for silver being restored to a monetary asset couldcome (explained here); and over the last couple of years, thebottoming of long-term interest rates has signaled that the time is soon.

Featured above, is comparison of silverprices and interest rates. During the first part of the silver bull market(especially from 2002 to 2008), silver mostly acted like a commodity. Duringthat same period interest rates were declining, and had not yet bottomed.

However, now it appears that interest rateshave bottomed, and this will be one of the reasons why silver will now be setapart from commodities, and will likely outperform.

From a fractal analysis point of view, weare at a period similar to 2003, but given the different interest rateconditions (as well as other changed conditions – more on this another time),silver is likely to rise much faster now.

A breakout from the current triangle couldbe epic, as shown in a previous article.

For more on this, andsimilar analysis you are welcome to subscribe to my premium service. Ihave also recently completed a Silver Fractal Analysis Report as well as a Gold Fractal Analysis Report.

Warm regards,

Hubert

“And it shall come to pass, that whosoevershall call on the name of the Lord shall be saved”

http://hubertmoolman.wordpress.com/

You can email any comments to hubert@hgmandassociates.co.za

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