SLV - Wave 4 driftSLV continues it's sideways action thus far continuing in what appears to be a standard wave 4 correction prior to rallying into wave 5. The indicators shown seem to confirm that this is at best the wave 4 correction and the established channel indicates further possible drift until the end of the year. The spike that occurred this week was quickly sold but it does seem to show the potential explosiveness that could happen overnight.
Fundamentally, the fiat currency system appears to be in jeopardy as the Fed embarks on what appears to be a new round of monetary stimulus. The world is awash in debt. Any attempt to raise interest rates can only result in disaster. Social and political turmoil is sprouting up around the globe yet precious metals languish. Several countries are now establishing gold markets in currencies other than the US Dollar. Various countries and central banks are accumulating precious metals.
The size of the silver and gold markets are tiny compared to other markets like currencies, bonds and stocks. A broad-based move to add precious metals to portfolios could reveal this size and boost prices back to the highs. That's pretty much a triple from today's prices. There aren't many other market classes that can provide this much bang for the buck. Seems inevitable but for now, patience is required.
