Everything in life moves in cycles. Seconds, minutes, hours, days, all add up to become part of a cycle. Some cycles, such as the beating of the heart move fast, while a millennium moves very slow. This article will draw your attention to a very important7 year cycle. (Charts courtesy Stockcharts.com unless indicated).
The number 7 is much more prevalent in nature than most of us realize: There are 7 oceans, 7 continents, 7 vertebrae in the neck,
7 layers of skin (2 outer and 5 inner), ocean waves roll in sevens, the rainbow has 7 colors, sound has 7 notes, there are 7 directions, The Jewish Menorah has 7 candles, there are 7 holes in your head (go ahead and count them), the earth was created in 7 days (including a day of rest), a cube has 7 dimensions (including the inside), the male body has 7 parts, the number 7 is used 735 times in the Bible.
Seven is the number of completeness and perfection (both physical and spiritual). It derives much of its meaning from being tied directly to God’s creation of all things. According to Jewish tradition, the creation of Adam occurred on October 7th, 3761 B. C. (or the first day of Tishri, which is the seventh month on the Hebrew calendar). The word ‘created’ is used 7 times describing God’s creative work (Genesis 1:1, 21, 27 three times; 2:3; 2:4). There are 7 days in a week and the Sabbath is on the 7th day. There are 7 deadly sins, 7 virtues, 7 gifts of the Holy Spirit, 7 classical planets, 7 numbers in a N/A phone number (after the area code), 7 hills in Istanbul, Rome and Jerusalem, 7 liberal arts, 7 wonders of the ancient world, 7 is the number of games in the playoffs for NHL, MLB and NBA. The number 7 is also important in Hinduism, Islam and Judaism.
There is an obvious 7 year cycle in economics.
Reaching back to forty nine years ago (7 x 7), in 1966 the USA experienced a ‘credit crunch’. In August of that year the US bond market suffered a serious ‘liquidity crisis’.
Seven years later in 1973, the world experienced an ‘oil embargo’ followed by a dramatic rise in the price of oil. There were long lines of cars at gas stations.
Move forward by 7 years and in 1980 Wall Street avoided the collapse of some of its banks and brokerage houses by forcing the Hunt Brothers to stop accumulating silver. The brokerages were shorting silver in the futures markets, where the Hunt Brothers were buying contracts and taking delivery. FED Chairman Paul Volcker allowed the COMEX to adopt a change in trading rules over a weekend. This change in rules forced the Hunts to come up with hundreds of millions of dollars in margin money with no advance warning. Silver peaked at 49.00 and gold topped out at $875.00, while interest rates peaked at 22%.
Another seven years passed and in the fall of 1987 stock markets crashed around the world. ‘Black Monday’ of October 1987 saw the Dow lose 22% in one day.
This post was published at GoldSilverWorlds on August 13, 2015.