Silver is copying NASDAQ crash, signals crash to $15/oz

• Have gold bugs eaten platinum’s premium?
• Cycle theory forecast for 2012 and the years ahead
• Gold & Silver: Deflationary downward wave

By Willem Weytjens
Gold bugs argue that Gold is far from being a Bubble. Especially not when you look at the following comparison, which plots Gold's rise versus the Nasdaq's rise in the 1990?s. The Bear Camp (including Nouriel Roubini for example), argue that Gold is (or was) a hyperbolic bubble that is about to (or already has?) burst:

I like comparisons because - although history doesn't repeat exactly - I think it rhymes, and when I look at both charts seperately, I think both are very nice.

However, what if the Bulls are comparing the wrong asset to the Nasdaq Bubble? What if they should rather look at Silver prices?

Back in April, I felt silver was a Bubble, as price was going VERTICAL, which (as all good things) never lasts forever. The parabola burst in April, and usually, it takes a LONG time before the next move up will start (if it ever will)

Look at the Pattern in the Nasdaq "Bubble" of the 1990's:

Let's have a look at the "Silver Bubble". A revert to the mean will put Silver prices near $15/oz!

Comparing Silver to the Nasdaq

We might now get the "Bull Trap", which means Silver might rise back towards $37-$39. This would also be the target of the red channel in the following chart:

When price hits that level, and then turns down, the last phase of this Bubble can start: Capitulation

Source: profitimes