Recessions and Silver Prices

The November 2011 issue of Robert Prechter's Elliott Wave Theorist draws an interesting relationship between recessions and silver prices.  His conclusion is that if one is bearish on the economy, one should be bearish on silver.  Likewise, if one is bullish on the economy, one should be bullish on silver.  In other words, being bearish on the economy, but bullish on silver would go against history.  See the following chart from the Elliott Wave Theorist.  He does point out that during hyper-inflationary periods, precious metals would be the investment of choice.  However, we are not at that hyper-inflationary zone yet, according to Mr. Prechter.  He sees further weakness in silver, likewise with gold.