Gold, Silver, Fish Lines, and Rhino Horns

Jim Sinclair says to buy “fish lines” and sell “rhino horns.”


Stated another way – buy value when the price has plunged and sell when prices have gone parabolic.

In today’s world that means:

  • Sell the dollar index
  • Buy gold
  • Buy silver
  • (It looks to me like the S&P is topping, even though I don’t see a rhino horn pattern.)

Note the following weekly charts:

Dollar Weekly

Dollar Index – Weekly


Gold Weekly

Gold Prices – Weekly


Silver Weekly

Silver Prices Weekly




  • The dollar index has made an impressive rally. Note the extreme “over-bought” condition in the TDI.
  • Gold has fallen hard since August 2011. Note gold’s extreme “over-sold” condition.
  • Silver had been smashed down since a near $50 high in April 2011. Reminder:  that rally started from less than $9.  Silver is now deeply “over-sold” and sentiment is terrible, which is often an indicator that it is time for a reversal.
  • The Disparity Index (on the weekly charts) shows the price deviation from the 40 week moving average.


Silver Daily

Silver Prices – Daily


In the above daily chart of silver, note the recent smash-down in silver prices and its deeply over-sold daily status.  Current DAILY silver TDI (10,5) reading is the most over-sold since the post 1980 crash.

What is next? 


  1. For daily predictions, ask the High Frequency Traders.
  2. For weekly predictions, silver, gold, and the dollar look over-extended and probably are at or near important reversal points.
  3. For long-term investors, gold and silver look like great buys.



  • Buy fish line patterns, sell rhino horn patterns, and trust that politicians and bankers will continue to borrow and spend money that must be “printed” in ever-increasing quantities. Example:  Official national debt increased by $1,013,588,000,000 in the one year from Sept. 23, 2013 to Sept. 22, 2014.
  • US Dollar: My expectation is that many more dollars must be created and consequently they will lose value against food, energy, and the commodities we need for daily living.
  • Gold: My expectation is that gold can’t be printed into existence and that it will retain or increase its purchasing power over time.
  • Silver: My expectation is that silver will become both more scarce and yet more essential to our economy, and that it will rally substantially from here.

Additional Reading:

Has The Gold Price Drop Run Its Course

BABA Marks the Top

Gold Sentiment

The World’s Largest Subprime Debtor


Gary Christenson

The Deviant Investor

If you would like to be updated on new blog posts, please subscribe to my RSS Feed or e-mail.

Promote, Share, or Save This Article
If you like this article, please consider bookmarking or helping us promote it!

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.