Silver Price Forecast: How The Credit Markets Will Blow Up

Previously, I have shown how the structure of the 70s silver bull market is similar to the current one. This similarity is also true for interest rates. This makes sense, given the fact that silver and interest rates move together in the long run.

Below, I have done fractal analysis of the 10-year US Treasury Yield, to show that similarity:

long term interest fractal

Interest Rates Fractal Analysis

The chart is from macrotrends.net.

On the chart, I have marked similar points (1 to 4) to show how the 70s period is like the current one. If the comparison is valid, then the yield has bottomed (or is close to a bottom), and will eventually break out of the downtrend that has been in place for decades.

This move will almost certainly collapse the bond markets (interest rates are the inverse of bond prices). A silver price move pass $50 would likely confirm this.

Disclosure: None.

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