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Mike,

I appreciate your and all comments, but respectfully suggested a more comprehensive review of my analysis before reaching any broad conclusion. As I have explained numerous times in the past, nominal charts (unadjusted for currency depreciation) are useless when studying secular trends. Dow 10,000 is meaningless is but one of many commentaries that supports this perspective.

The identification of secular trends, whether it be stocks, real estate, silver, gold, or any other asset, can be achieved only through the study of stationary time series. Assets priced in depreciating currencies are nonstationary. Historical comparisons within a nonstationary time series will lead to statistically unsound conclusions and inhibit proper recognition.

The US dollar or nominal chart illustrates one of many messages from the silver market. The message that should be attracting investor’s attention is the change in the trend’s acceleration – nothing more. While price is a concern at the point of purchase and sale, it is but one dimension of profit. A large spread between purchase and sales price becomes increasingly insignificant as the total number of ounces acquired decreases.

Respectfully Yours,

Eric

Eric,

How can a chart dated from 1971 be used to make projections into the future, without that chart being inflation adjusted (either by government CPI or better, honestly, as per SGS.) The US dollar of 1971 bears no resemblance in value whatsoever to the dollar of today. Just like an inflation adjusted chart would bear no resemblance to the silver chart published today. Yet I see minds as great as yours, Sinclair's and Armstrong's doing this. I respect and deeply appreciate your work, but isn't this like trying to take accurate scientific altitude measurements while standing in quicksand?

Mike