Start the conversation
Comment on This Story
Or to contact Money Morning Customer Service, click here.
There are encouraging signs for the silver price in 2016…
Positive silver price action coupled with supportive news on the fundamental side are pointing to a possible end to the silver bear. Still, we'll need to see some key technical price targets met before we can declare an outright return to a full-fledged silver bull.
To figure out what might lie ahead, let's look at recent action and market news for silver prices…
Silver Price Retesting Lows Before 2016
As of Friday, silver had pretty much kept pace with gold for the week, except for some additional volatility.
Here's how last week's five trading days looked:
You can see that on Tuesday, Nov. 17, and Wednesday, Nov. 18, the silver price held up better than gold and bounced more as minutes from the Fed's October meeting were released.
That followed through on Thursday with a gap higher, but then fizzled toward the end of the day.
Then into Friday, the weakness continued, with both metals down.
So by the end of the last trading week, the silver price was actually down about 1%. Not a big deal, but also not in the right direction.
As you can see from the above silver price chart, the metal is close to testing its August lows. With silver down over 8% so far this year, it's becoming a crucial time for the silver price.
We'll be watching carefully how it behaves at this juncture.
Meanwhile, if we look at the fundamentals of supply and demand in the silver market, they're certainly looking supportive.
Silver Price in 2016 Gets Supply/Demand Boost
After 12 consecutive years of higher mined silver output, it appears we're about to buck that trend…
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.
Leave a Reply