FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.

posted on 25 November 2016

Where The Price Of Silver Is Headed Now

by Peter Krauth, Money Morning

Special Report from Money Morning

It's been a challenging week for silver investors, given the post-election drop and ongoing weakness in the price of silver.

Here's what I mean…

On Nov. 10, silver prices closed at $18.58. Now the price of silver trades nearly $2 lower at $16.65.


I think what's happened is twofold. The first is that markets, long-term bonds, and the U.S. dollar are all up post-election. That has attracted investors away from precious metals, sending prices lower. The second driver is simply a correction phase for silver prices that is playing itself out.

After peaking at $20.28 in late July, the price of silver has been in a correction/consolidation phase that so far has lasted roughly three-and-a-half months. In that time, silver is down by 22%.

So what does it all mean for this high-potential precious metal? Well, at least one indicator is pointing to a possible near-term bottom. And that could mean markedly higher silver prices in the new year…

How the Price of Silver Is Trending Now

The Essential Guide to Buying Gold & Silver

In our new 2016 report, you’ll find…

  • The four best types of physical gold and silver to own

  • The five best silver and gold exchange-traded funds (ETFs) to invest in right now, two of which have surged a combined 69% this year

  • The four most reputable metals dealers to purchase gold and silver from

Get our Money Morning guide to gold and silver investing right here, free of charge.

After its precipitous price drop late last week, silver continued to struggle last week.

Silver started out on Monday, Nov. 14, at $17.22, then dropped to $16.71 by 11:00 a.m. It quickly reversed and began clawing back to close at $16.85.

The next two days saw a relatively tight consolidation sideways, with silver prices trading between $16.90 and $17.20.

But by midday Thursday, it had succumbed to a powerful U.S. dollar. By 3:00 p.m. that day, silver was trading at $16.62 and barely closed higher at $16.64.

Then Friday brought further weakness as the U.S. dollar ran to nearly 14-year highs. Silver was trading down to $16.59 by late afternoon.

Silver prices today are up slightly, 0.45%, to $16.63.

Meanwhile, here's how the U.S. dollar was acting last week, as long-term bonds continued to sell off and a December rate hike became all but an outright promise from the Fed's Yellen.

price of silver

Here's what that means for the price of silver and where we can expect the precious metal to head from here…

Our Newest Price Target for Silver

So what's next for silver? Technically, it hasn't been acting well.


We can see that it has clearly dropped below its 50-day moving average, and its 200-day moving average has failed as support. However, at this point, odds are good that the $16 level, which was resistance in February and March, then support in late May, will act as support once again.

Looking at the RSI and MACD, it seems downward momentum could be close to playing itself out.

But another indicator to watch is the gold/silver ratio.


The current level, which indicates that it takes nearly 73 silver ounces to buy one gold ounce, is where we've witnessed support and resistance previously.

If gold bases at current levels, then silver prices could be poised to jump. It's possible the gold/silver ratio will get a little more extreme, but I think we could see it top shortly. That would mean a decent bounce from near current levels, possibly taking silver quickly back to its 200-day moving average at $17.50.

If the ratio returns to the low it hit in July, at current gold prices, that would mean silver trading at $18.60, which is no stretch given it was there just a few weeks ago.

With a bit of luck, that will happen by year's end.

>>>>> Scroll down to view and make comments <<<<<<

Click here for Historical Metals Post Listing

Make a Comment

Econintersect wants your comments, data and opinion on the articles posted. You can also comment using Facebook directly using he comment block below.

Econintersect Precious Metals


Print this page or create a PDF file of this page
Print Friendly and PDF

The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.

Take a look at what is going on inside of
Main Home
Analysis Blog
Was Marx Right?
Angst in America, Part 5: The Crisis We Can’t Muddle Through
News Blog
Early Headlines: Trump Blames Dems And Constitution For Chaos, US Child Poverty, Winter Leaves North New England, Labour Gains In Polls, And More
Grading President Trump's First 100 Days: B!
The Most Important Gaming Platforms 2017
Earnings And Economic Reports: Week Starting 01 May 2017
Ancestors Of Flores 'Hobbits' May Have Been Pioneers Of First 'Human' Migration Out Of Africa
The Global Top 10 Android Apps
What We Read Today 29 April 2017
'Horrifying' Witnesses Describe Latest String Of Prisoner Executions In Arkansas
Apr 25, 2017 08:01 GMT What Trump's Next 100 Days Will Look Like
How Did Small Businesses Do In 2016?
Costs Of Building A 355-Ship US Navy
The Roots Of Rising Treasury Yields
How Will College Grads Do In 2017 In Their Job Search
Investing Blog
Technical Thoughts: Finding Contrarian Ideas
More People Have Access To Netflix Than A DVR
Opinion Blog
Investors: Super Size Me
How Our Addiction To Safety Could Lead To Another Financial Crisis
Precious Metals Blog
A New Age For Gold
Live Markets
28Apr2017 Market Close: Wall Street Closed Mostly Down On News The U.S. Economy Grew At Its Weakest Pace In Three Years, WTI Crude Settles In The Low 49 Handle
Amazon Books & More

.... and keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet
Asia / Pacific
Middle East / Africa
USA Government



Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day


Asia / Pacific
Middle East / Africa
USA Government

RSS Feeds / Social Media

Combined Econintersect Feed

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution



  Top Economics Site Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2017 Econintersect LLC - all rights reserved