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Silver and the Yield Curve Inversion

Commodities / Gold & Silver 2019 Sep 23, 2019 - 07:08 PM GMT

By: Hubert_Moolman

Commodities

Yield curve inversions have historically been great for silver prices. Currently we are experiencing such a phenomena, and again it is evidence of conditions that are conducive to some impressive silver rallies.

Below, is a long-term chart showing the spread between the 10-year Treasure Note Yield  and the 3-month Treasury Bill Rate.



I have chosen these two to show data for a long-term analysis. There appears to be a mega rounding top. The spread has just recently gone negative (inverted). There is a great likelihood that the spread could go lower, given the rounding top and a similarity to the 70s pattern (ABC).

Silver has already started to move, but what kind of rally can we expect going forward? Previously, I have argued that we are likely to see a rally similar to the late 70s .

Below, is a comparison of the above chart and a long-term silver chart to:


Notice how there were two deep negative spread dives in the 70s. As soon as those spreads went negative the first time during those inversions, silver started a massive rally.

As soon as the current inversion started, silver also started to rally. Will we have a shallow negative spread dive like the two recent ones, or will we see a deep and protracted negative spread dive like that of the 70s?

A deep dive like the 70s would be consistent with conditions ideal for a monster silver rally.

For more on this, and similar analysis you are welcome to subscribe to my premium service. I have 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 whosoever shall call on the name of the Lord shall be saved”

http://hubertmoolman.wordpress.com/

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

© 2019 Copyright Hubert Moolman - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


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