Today’s chart of the day examines silver’s 12 year logarithmic parabolic up-trend chart that began in 2001.
Silver is just now approaching it’s parabolic up-trend line for the first time since 2009, and only 2nd time since 2002.
The last time silver touched its parabolic uptrend line the metal rose from 8 to $50 in 3 years. The only other time since 2002 that silver touched it’s vertical up-trend line was in 2003, after which silver went on a tear from $3.50/oz to $21.35/oz over the next 5 years.
Silver is now approaching it’s vertical uptrend line near $32. Should the same percentage gain be repeated as the prior two occurrences, silver would need to rise to over $200/oz by 2016-2018.
Chart image courtesy StockCharts.com