After a Volatile Week, the Price of Silver Is on Track for More Gains

This is a syndicated repost courtesy of Money Morning – We Make Investing Profitable. To view original, click here. Reposted with permission.

After a wild ride last week, investors have an increasingly optimistic outlook for the price of silver. And for good reason.

You see, the 2018 World Silver Survey by the Silver Institute was just released, and it’s immensely positive for the silver market.

According to the Silver Institute, global demand for silver is growing at a ravenous pace, rising to its highest level in five years.

And this trend shows no signs of slowing down. In fact, it could be the catalyst that sends the precious metal soaring.

I’ll show you exactly how high it can run in my latest silver price target in just a bit.

But before we look at the explosive figures in the silver survey, let’s take a closer look at silver’s price action over the last week…

A Rollercoaster Week Puts the Price of Silver In the Black

On Wednesday (April 11), silver locked in a 0.6% gain after U.S. President Donald Trump threatened military action against Russia in response to Syrian chemical attacks. Silver stocks alone saw a 1% jump in response to the president’s news, while the Dow Jones gave up 1%.

Despite Wednesday’s gains, Thursday (April 12) saw silver give back gains as the White House walked back the president’s comments. While the U.S. Dollar Index (DXY) and stock indexes saw significant increases, silver lost ground, breaking even on Wednesday’s gains.

You Must Act Now: America is headed for an economic disaster bigger than anything since the Great Depression. If you lost out when the markets crashed in 2008, then you are going to want to see this special presentation…

Take a look at how the DXY jumped on Thursday…

And you can see a similar surge in the S&P 500 on Thursday, too, putting more pressure on silver prices.

On Friday (April 13), the markets reversed – the dollar consolidated while silver bounced back, gaining what it had lost since Wednesday’s close. On Monday (April 16), the dollar retreated further, to 89.43, and silver closed at $16.64, providing the metal with a gain just shy of 1% to close the week.

While silver’s weekly gain was great, the real news here for the price of silver is the movement of the dollar. You see, the dollar may be entering a consolidation pattern and could be set to move sideways for a while.

You can see this consolidation pattern in the chart below.

This suggests that the dollar may be entering a holding pattern – great news for silver, which normally sees far more opportunities for a breakout when the dollar turns stagnant.

As for silver itself, we see a triangle pattern that suggests the metal is poised for a significant breakout. As you can see below, silver’s recent action has just pushed the metal above its 50-day moving average.

The top of the smaller triangle is right at the 200-day moving average of $16.76, or just a few cents above the current price. We could get a breakout to the upside with that level acting as new support. The upper line of the wider triangle is at $17.25 right now; that’s just a 3.5% gain from the current price.

Meanwhile, silver stocks have just pushed above their own 50-day moving average as well, and the RSI and MACD momentum indicators are trending distinctly higher going all the way back to mid-February.

Taken together with the silver survey, both of these trends are setting silver up for strong gains – gains that I believe are right around the corner.

Here’s my new silver price prediction…

Silver Is on Track for a 7% Gain by Summer

Look for silver to possibly clear $17.50 in the next several weeks and $18 by summer. And in the back half of 2018, we could even see the precious metal best $20.

However, these estimates could be low when we factor in the impact of the silver survey.

According to the survey, industrial demand for silver grew last year by 4%, its first rise since 2013. That was boosted by strong demand from the solar panel industry and the production of semi-conductors.

Silver jewelry and silverware demand posted an increase of just 2% over the previous year, with India taking most of the credit for that, accompanied by the United States.

Physical silver investment was down, as coin and medal fabrication fell thanks to lower demand in the United States, Canada, and China. Silver bar demand was also down. But exchange-traded products, like ETFs, saw their holdings rise by 4%.

Overall, fundamentals continue to remain supportive for the metal, and sentiment looks like it may be pivoting toward positive in the relatively near term.

While silver is one of the best hedges against market crashes, I’ve been looking at an even more effective program to protect your wealth during these volatile times…

To get full access to all Money Morning content, click here

About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience – for free. Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.

Disclaimer: © 2018 Money Morning and Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201.

The post After a Volatile Week, the Price of Silver Is on Track for More Gains appeared first on Money Morning – We Make Investing Profitable.

Wall Street Examiner Disclosure:Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. I am a contractor for Money Map Press, publisher of Money Morning, Sure Money, and other information products. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. In some cases I receive promotional consideration on a contingent basis, when paid subscriptions result. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. No endorsement of third party content is either expressed or implied by posting the content. Do your own due diligence when considering the offerings of information providers.

Leave a Reply