Why I Think Silver Prices Could Soar Over 180% by 2020

As November's second full trading week came to an end last Friday, silver prices were on the rise. But a political crisis in Germany sent silver prices tumbling...

Between Friday, Nov. 10, and Friday, Nov. 17, the metal surged 3% to its highest level in a month. This came on the back of a falling U.S. dollar and declining stock market. The U.S. Dollar Index (DXY) - which measures the dollar against the euro and other prominent currencies - dropped from 93.93 to 93.67 last Friday, while the Dow Jones tumbled 0.4%.

But then the silver price's 3% gain from last week evaporated in one fell swoop yesterday (Monday, Nov. 19) on geopolitical concerns out of Germany...

That's where German Chancellor Angela Merkel is having trouble forming a coalition uniting her conservative party with the country's pro-business Free Democrats and environmentalist Green party. Her failure to unify Germany's major political parties leaves her potential fourth term as chancellor in doubt.

While these concerns often cause unease among investors, drawing them into silver, the news out of Germany weakened the euro, which only made the dollar more attractive. This pushed the DXY above the 94 level, punishing the price of silver in the process. It fell 3.1% to a two-week low of $16.84 yesterday.

I still think silver prices will rebound from here. The political uncertainty right now should renew safe-haven buying, eventually pushing the metal toward our bullish target by the end of 2017.

Not only will I show you our 2017 target, but I'll also show you why I think silver could rise more than 180% over the next few years.

First, let's take a closer look at silver's 3% gain last week - and subsequent erasure of that gain yesterday...

Silver Prices Rally 3% Last Week (Nov. 10-17)

After closing at $16.87 on Friday, Nov. 10, silver opened back above the $17 level on Monday, Nov. 13. The DXY climbed from 94.39 to 94.52, but even that wasn't enough to stifle the silver price rally.

It ultimately settled at $17.05 for a 1.1% gain.

The gains continued on Tuesday, Nov. 14, despite the silver price opening below the $17 level, at $16.93. As the DXY fell back below 94 to 93.83, silver jumped to $17.07 by the end of the day for a small 0.1% increase.

On Wednesday, early morning weakness dragged the DXY down to touch 93.50 near the opening bell. But it edged back up throughout the day to close mostly flat, at 93.81. This dragged silver prices 0.6% lower, to close the session at $16.97.

Check out the DXY's behavior over the past five trading days, especially its attempt at breaking the overhead resistance, at 94, multiple times this past week...

silver prices

The silver price fought against a rising DXY on Thursday, eventually coming out of the session with a gain. As the DXY climbed from 93.81 to 93.93, the metal opened back up at the $17 level. It closed the day at $17.07 for a 0.6% gain.

Silver buyers came out in hordes on Friday, Nov. 17, as the dollar and U.S. stock market fell in unison. The price of silver rocketed 2.2%, to close at $17.37 - the highest settlement since Oct. 16. With that, the metal logged a weekly gain of 3%.

But that rally didn't last long, as silver prices erased last week's entire 3% gain in just a single day yesterday (Monday, Nov. 20). Silver opened, lower at $17.15, and continued lower from there as the DXY rallied from 93.66 to back above the 94 level, at 94.07. The metal fell all the way to $16.84, marking a loss of 3.05% for the day.

Urgent: Executive Editor Bill Patalon just saw something on his precious metals charts he's only seen twice in 20 years. He calls it the "Halley's Comet of investing" - and it could lead to windfall profits. Read more...

The silver price today (Tuesday, Nov. 21) has regained the $17 level yet again. While the DXY is down from 94.07 to 94.03, the metal is up 0.9% and trading at exactly $17.

Silver's constant flirtation with $17 over the last week shows just what kind of short-term volatility silver investors are in for. Waiting through the short-term drops is something we talk about a lot here at Money Morning.

But looking at silver prices in 2017 overall, they're currently up 6.3%. And I think silver could keep running higher, not just through the final month of the year, but also through the next two years.

In fact, I think the price of silver could post an incredible triple-digit rebound by 2020...

My Bullish Silver Price Predictions for 2017 and Beyond

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Silver's previous bull market high was $48.60 hit in April 2011. Now, I think silver could even surpass that lofty target by 2020.

Right now, that might seem like a ridiculous expectation. But I firmly believe that the precious metals bull market only finished its mid-secular correction back in December 2015. Since then, silver is up an impressive 22%.  Once markets peak from their overextended, multi-year bull, silver stands to benefit in a big way.

And we can see upside potential for silver in this chart below...

Silver price chart

With last Friday's close at $17.37, silver clearly broke through the top line of its triangle formation. Despite yesterday's retreat to $16.84, we're still near the extreme right of that triangle, and the next major move I expect will be up.

So, I'm looking for the silver price to reach $18.50 before the end of the year. That would be a big 8.8% gain from today's price of $17 in a little over a month. And that's nothing compared to where I see silver soaring in the next two years, which could lead to gains of 180% or more.

Up Next: Rare Gold Anomaly

Money Morning Executive Editor Bill Patalon just caught something on his gold charts that he's only seen twice in the past 20 years. A $13 billion gold anomaly he calls the "Halley's Comet of investing."

It's very rare, and fleeting, and Bill sees things lining up perfectly to bring some very sizeable precious metal profits to well-positioned investors.

Click here to check out his research...

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