Ted Ferguson has released the latest MUST READ Thunder Road Report titled Silver: Right Now (probably) the Best Asset in the World. Ferguson examines silver’s cyclical trends and charts, and suggests silver is ready to place new all-time nominal highs by this August.
Ted Ferguson has resurrected analysis done in the early 1970s which found that the key determinant of the silver price was a 5.58 year cycle. There is also a 31 year cycle (albeit less statistically significant) and, combining the two, has given a close correlation with silver prices since 1901.
This analysis picked out the peak in the silver price in 1974, the all-time high ($50/oz.) in 1980 and the recent high ($49.50/oz) in 2011 (1980 + 31).
If it continues to play out, there should be a new cyclical high in July 2013, implying a new all-time in the silver price above $50/oz.