Gold continues to wallow near its recent low price level, near $1765. Silver has continued to trend moderately higher – but still has not broken out to the upside. Many analysts have continued to estimate when and how metals will begin the next wave higher. My research team and I believe we’ve found some answers to these questions and want to share our research.
Silver Explodes In Late-Stage Excess Rallies
The first thing we want to highlight is that Silver tends to rally excessively in the later stages of any precious metals rally. For example, in mid-2010, Silver began an incredible upside price rally after Gold rallied from $720 (October 2008) to $1265 (June 2010). This suggests that the price relationship between Gold and Silver “dislocated” in the early stage breakdown of the financial markets near the peak of the 2008-09 Housing Crisis Peak. Then, in late 2010, Silver began to move dramatically higher while Gold continued to push an additional 80%+ higher.