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Is Silver Pointing To A Bond-Market Collapse?

Published 04/21/2016, 10:31 AM
Updated 07/09/2023, 06:31 AM

I previously noted how the structure of the 1970s silver bull market is similar to the current one. This similarity is also true for interest rates, which makes sense, given the fact that silver and interest rates move together in the long run.

Below is a fractal analysis of the 10-year US Treasury Yield, which shows that similarity:

10-Year US Treasury Yield: Fractal Analysis

Source: macrotrends.net.

I have marked similar points on the chart (1-4) showing how the 1970s resembles today's T-bill market. 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 run inverse to bond prices). A silver price move pass $50 would likely confirm this.

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