Silver prices today are hovering around $14.28 an ounce, down nearly 10% for the year. Silver linings have been hard to come by lately in this precious metal market.
On Nov. 11, the silver price had declined for 10 trading sessions, a rare event in the markets. The $4.5 billion iShares Silver Trust (NYSE Arca: SLV) has followed silver, also down for 10 straight days.
But interestingly, despite weakness in silver stocks, they have actually shown more resilience than silver itself over the past week.
And if we look at the fundamental demand side of the silver market, we see it's an area where there are encouraging signs for the silver price forecast...
Silver Prices Today vs U.S. Dollar
Last week, silver prices were hit by ongoing negative sentiment combined with sustained strength in the U.S. dollar.
Silver prices dropped about 5.6% last week, going from $15.10 to $14.25. This was in sympathy with gold, where silver took its cue.
According to research from Sentimentrader.com, silver has only declined in 10 straight trading sessions twice before, once in 2000 and again in 2008. In those cases, over the following few weeks, silver gained 4% and 30%, respectively.
Action in silver stocks has been encouraging, however, when compared to the silver price. Here's how the two compare if we look at the last week in trading:
While the time frame is admittedly very short, it still begs the question whether silver stocks are potentially leading a possible turnaround in silver.
About the Author
Peter Krauth is the Resource Specialist for Money Map Press and has contributed some of the most popular and highly regarded investing articles on Money Morning. Peter is headquartered in resource-rich Canada, but he travels around the world to dig up the very best profit opportunity, whether it's in gold, silver, oil, coal, or even potash.