James Turk BlogJames Turk BlogJames Turk BlogJames Turk Blog
  • Blog
  • About
    • About FGMR
    • James Turk
    • GoldMoney
  • Books
    • Money and Liberty
    • The Money Bubble
    • The Collapse of the Dollar
Next Previous

Silver’s Very Bullish 3-Decade Chart Pattern

James Turk 17 August, 2013

The following silver chart will be familiar to everyone who follows my work. I first presented this pattern in my newsletter about twenty years ago, and I have been tracking it closely ever since, though recently there has been a twist to the way this pattern has developed.

I have been describing silver’s long-term chart pattern as a rounding bottom, which shows distribution from the 1980 peak to the early 1990s, followed thereafter by a decade trading range and then a decade of massive accumulation. In other words, over this period silver moved from overvaluation and selling by weak hands, to undervaluation and buying by strong hands.

The new twist to this pattern is that the rounding bottom has evolved into a ‘cup with a handle’, which I have drawn on the chart (outlined in green).

Regardless of the name we call the above chart, the bottom line is that it is presenting a very bullish picture for silver. After a decade or so of distribution, a decade in a trading range and another decade of accumulation, silver is in strong hands, particularly after the onslaught it endured the past two years.

Technical analysts will note, however, that the above pattern is not complete. More of the story has yet to be told.  Perhaps the chart pattern will fail, or perhaps the pattern will complete in the months ahead with silver moving higher to completely form the handle, which is what I expect.

Of course, the pattern will only be complete when silver moves above the lip of the saucer, which is its record high of $50. If that happens, then silver will begin stage two of its bull market.

In summary, the outlook for silver is spectacular, and my recommendation for both precious metals remains unchanged. Accumulate gold – and if you are inclined to accept the greater volatility, then accumulate silver too – on a cost-averaging program with monthly (or quarterly if it fits your budget better) purchases. By doing so you are saving sound money. Buy physical gold and physical silver only.

If you are professional trader or speculator, for my specific trading recommendations, see Trading.

James Turk

More posts by James Turk

JAMES TURK

james_turk_blog

GOLDMONEY

GoldMoney_Inc

MONEY AND LIBERTY

collapse_of_the_dollar_james_turk

MONEY BUBBLE

the_money_bubble_james_turk

COLLAPSE OF THE DOLLAR

collapse_of_the_dollar_james_turk

COMING COLLAPSE OF THE DOLLAR

collapse_of_the_dollar_james_turk

GET GOLDMONEY INSIGHTS

GOLD & SILVER LIVE PRICES

@FGMR RECENT TWEETS

  • Flight out of #USD picked up momentum today. #US #Dollar Index finally sliced thru 102, but not yet oversold. Now h… https://t.co/lmAjCkTu18

    4 days ago
  • The #US #Dollar Index is hanging over the edge of a cliff. Is this the week it takes a tumble? Or does it hold 102… https://t.co/7UsxODumnX

    7 days ago

FEATURED VIDEO – July 8, 2022

FEATURED VIDEO – January 10, 2022

Categories

  • Articles
  • Books
  • Briefcase
  • Gold
  • Gold News
  • Market Commentaries
  • Silver
  • Trading
  • Uncategorized

TOPICS

bitcoin bonds central banks currencies debt dollar doug casey ecb economy euro fed gold greece hyperinflation inflation markets mining stocks MMGA money oil Politics QE recommended silver stock market trading Trump usd us dollar Washington

ARCHIVES

  • You may also like

    Mid-Year Review

    Read now
  • You may also like

    Gold and Silver Form Promising Bullish Divergences

    Read now
  • You may also like

    Silver is Approaching Stage Two of its Bull Market

    Read now
  • You may also like

    Watch the Gold/Silver Ratio

    Read now
  • You may also like

    The scramble for physical metal intensifies

    Read now

ABOUT

FGMR My objective is to share with you my views on gold, which in recent decades has become one of the world’s most misunderstood asset classes. This low level of knowledge about gold creates a wonderful opportunity and competitive edge to everyone who truly understands gold and money.

RECENT POSTS

  • The Forgotten Fourth Function of Money & G-SIBs

    Money is routinely defined by what it does, rather than what it

    13 December, 2022
  • A Century of Fascism

    In 1922 Benito Mussolini became prime minister of Italy, putting that country

    31 August, 2022

TAGS

bitcoin bonds central banks currencies debt dollar doug casey ecb economy euro fed gold greece hyperinflation inflation markets mining stocks MMGA money oil Politics QE recommended silver stock market trading Trump usd us dollar Washington
Copyright © 2001-2022 Free Gold Money Report | All Rights Reserved
  • FGMR
  • GoldMoney
  • James Turk
  • Money and Liberty
  • The Collapse of the Dollar
James Turk Blog