Guest post by GM JenkinsI've drawn a set of parallel trend lines on the 8 year log chart of silver, representing a growth rate of about 27% per year. The lines seem to capture silver's movement really well for the 5 years before it dropped off a cliff in 2008.
As I recently pointed out, silver's latest explosion (9/10 - 5/11) simply made up for the (manipulated?) events of Fall 2008, pulling silver back into its now extended exponential trend up.
That's the good news. The bad news is, silver touched the red dotted trend line in April 2004, April 2006, April 2008, and now in April 2011. Every time it has touched the red dotted trend line, it has fallen back down to the brown dotted trend-line before making its way back to the red.
Don't shoot the messenger, but if this pattern holds, we should probably expect silver to touch the blue/purple lines soon, and snake around the 30's for awhile...
*that is, unless the COMEX is about to default, SLV plummet to 0, and JPM go bankrupt, in which case none of this shit matters.
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