Previously, I have shown how the Dow has actually outperformed silver and gold since the creation of the Federal Reserve in 1913.

Today, if silver had the same kind of performance as the Dow since around the creation of the Federal Reserve in 1913, then it would have topped out at $225.20 [(29568.6/78.78)*.6). Yet, it only topped out around $50 in 1980 and 2011.

In 1973 silver was in a similar type of position. The Dow had peaked at 1067.2 (in Jan 1973), which represented a X13.55 (1067.2/78.78) since 1913. If silver scored a similar performance, it would have had a peak of $8.128, yet its peak at that time (the beginning of 1973) was only around $2.56, which was achieved in 1968.

Of course silver eventually passed that $8.128-level (in 1979) towards the end of that bull market, and went much further. What was also interesting in 1973, was the fact that silver surpassed its all-time high in the same year that the Dow peaked (touched the all-time high about 5-months after the Dow peak).

It will be interesting to see how long it take for silver this time to touch the all-time high (around $50), and how long before it can match the Dow’s performance since 1913, by touching the $225.20-level.

A comparison to the 70s situation will eventually tell us a lot about the current condition of the monetary system.

Below, is a long-term chart of silver (macrotrends.net) that shows how 2020 and 1973 could be similar for silver:

 

 

I have marked two patterns, both starting at a major silver peak (1919 and 1980), with major interest rate peaks following soon after. I have marked them 1 to 6, and shown how they exist in similar context relative to important Dow peaks and crashes.

We are now potentially after the all-time high of the Dow (Feb 2020), just like after the all-time high in January 1973. I have no doubt that silver will surpass the $50 level as well as the $225.20 to match the Dow’s performance since 1913. The important question is: How long will this take?