End Of Fiat: It Is Evident In The Gold, Silver And Crypto Charts

We are at the end of the fiat debt-based monetary system. It is becoming clear that the system is in collapse due to the enormous debt load.

The thing (debt) that it needs to try and survive another while, is the very thing (debt) that is busy collapsing the system. It is virtually spiraling towards death, come what may.

In fact, this why the world is in such a mess currently. You cannot have smooth sailing when the waves are roaring.

There are some clear evidence of this stress in the charts of “fiat alternatives” like gold, silver and crypto currencies. At this stage of the collapse, these alternatives are singing the same tune (they are extremely bullish).

As we will get further along in this crisis, there will be a big separation among these alternatives, based mainly on the criteria of value (but that is for another time).

For now, they all provide “crisis value”, by simply being an acceptable fiat alternative to many.

Gold has just recently made an all-time high, and is obviously the gold standard when it comes to being a fiat alternative. This is where most people will go to preserve value throughout this collapse and well after.

Below, is a long-term view of gold comparing current action to a 70s fractal:

(Click on image to enlarge)

The top chart is gold from about 1997 to 2020 (current fractal), and the bottom chart is gold from about 1965 to 1980 (70s fractals). If the current fractal continues to follow the 70s fractal, then we could see gold continue to multiples of its current all-time high.

This chart clearly signals a run away from fiat, in my opinion. Furthermore, it is supported by these comparisons.

Silver is another alternative that many are going for (and rightly so), especially since it is still extremely cheap. Just like gold it is looking very bullish, and just like gold it will soon surpass its all-time high.

In fact, when silver surpasses its all-time high, it will be a clear signal that this crisis is much more serious than the 2007/2008 financial crisis, since it was unable to clear $50 then. In other words, gold blew its warning trumpet during the 2007/2008 crisis when it surpassed its all-time high, but silver did not confirm (due to it not surpassing $50 then)

Below, is a long-term silver chart (from macrotrends.net) that highlights just how explosive the situation for silver could possibly be:

(Click on image to enlarge)

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 and way beyond.

Hate them or love them, many people are running to Bitcoin and other crypto currencies, especially the younger generation. The very fact that Bitcoin and crypto currencies exist, and are coming to the fore, just like various forms of private money did during the Great Depression, is a major sign of the times.

Bitcoin has an interesting dynamic with the US Dollar index. Below, is a comparison between Bitcoin (bottom chart) and the US Dollar index (top chart):

(Click on image to enlarge)

Bitcoin tends to make key breakouts around the same time the US Dollar index tends to make a key breakdown (and vice versa). This was the case before the Bitcoin blow-off rally in 2013, and recently.

It is interesting that the 2013 US Dollar index breakdown and the current breakdown also coincides with the fractals marked (1to 5) on the Bitcoin chart. This is a perfect setup for a massive Bitcoin rally.

For more on this and this kind o fractal analysis, you are welcome to subscribe to my premium service. I have also ...

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Edward Simon 4 years ago Member's comment

Makes for good reading, not sure about investing...