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.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, using Livefyre just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.

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
Minsky’s Theory of Asset Prices: Why Minsky Was NOT a Neo-Monetarist
Many (But Not All) Dynamics Improving But Federal Tax Receipts Are Down
News Blog
Infographic Of The Day: Why Pets Make Us Happy
Early Headlines: Asia Stocks Mixed, Oil Up, Dollar Down, Obama Issued Fewer Exec. Orders, German Inflation 1.7 Pct, Pound Rally Temporary?, China Prop. Investment Stabilized And More
Democracy - 'End of History', Really?
Preview Of Dirk Ehnts' New Book
Britons Are Very Pessimistic About The EU's Future
Sherlock Holmes And The Strange Case Of Anti-intellectualism
Average Gasoline Prices for Week Ending 16 January 2017 Fell Almost 3 cents
What We Read Today 17 January 2017
Massive Alligator Shocks Tourists As He Nonchalantly Strolls By On Walking Path
January 2017 Empire State Manufacturing Index Declined But Remains In Expansion.
After A Lackluster Outturn In 2016, Economic Activity Is Projected To Pick Up Pace In 2017 And 2018
Invading China, One Trade Dispute At A Time
Credit Market Arbitrage And Regulatory Leverage
Investing Blog Technical Summary 17 January 2017
Apple Takes The Wireless Headphone Market By Storm
Opinion Blog
Trump's 'Great Gambit'
More Proof The MMT's "Jobs Guarantee" Can't Work
Precious Metals Blog
Gold's 2016 Gain Indicates A 19% Surge In 2017
Live Markets
17Jan2017 Market Close: Wall Street Closes Lower As Trump Rally Looses Steam, Gold Gains, US Dollar Slips And Crude Prices Can't Hold On To Higher Numbers
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