Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

Silver and the Yield Curve Inversion

Hubert Moolman
0 Comments| September 23, 2019

{{labelSign}}  Favorites
{{errorMessage}}

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.

hm1.jpg

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:

hm2.jpg

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.

Warm regards

Hubert Moolman


Tags:

{{labelSign}}  Favorites
{{errorMessage}}

Comments

No comments yet. Be first to comment!

Leave a Comment

You must be logged in to be able to post a comment.

Get the latest news and updates from Stockhouse on social media

Follow STOCKHOUSE Today

Featured Company