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For both silver bulls and bears, the performance of the price of silver over the last year has been frustrating.
Over the last 12 months, silver has consistently moved between $15.50 and $18 – a 16% range that has offered little in the way of significant profit potential.
However, the days of low returns from the precious metal may soon be behind us.
You see, silver is becoming an increasingly important commodity in the industrial production of some of our most in-demand modern-day goods. Everything from iPhones to electric cars require silver as an essential component.
With demand growing, I believe silver prices are preparing to break out of their narrow price range and enter a boom phase of epic proportions.
Silver's imminent price move will set long-term silver investors up for immense profit. With silver trading for so little, now is the perfect time to establish a position in the precious metal and prepare for dramatic gains.
How dramatic? Let's take a look at the price of silver's performance over the last week and my estimates for how high it's heading next…
The Price of Silver Is Rising on an Increasingly Restrained Dollar
Silver gained on Tuesday (March 6), as the U.S. Dollar Index (DXY) fell significantly. The dollar's weakness came on the heels of the U.S. steel and aluminum import duties imposed by the Trump administration.
The DXY dropped from 90 to 89.55 by 8:00 a.m., helping to lift silver prices. Silver jumped to $16.63 at the open and climbed on balance, closing at $16.72.
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On Wednesday (March 7), the precious metal gave back most of Tuesday's gains. The dollar rallied and peaked at 89.75 by late morning. This prompted silver to sell off – the metal opened at $16.64, but quickly dropped to $16.40. Silver managed to close at $16.46.
Thursday's (March 8) movements were indecisive. The dollar leapt higher, going from 89.5 to 90.10, keeping silver down. The precious metal opened at $16.44 and closed slightly higher, at $16.46, for the day.
You can see the dollar's rally in the DXY chart below.
On Friday (March 9), the dollar paired its gains as stocks jumped on news that U.S. President Donald Trump would allow some countries to be exempt from the new steel and aluminum tariffs. The DXY retreated just above 90, while silver, which opened at $16.42, jumped to a midday peak at $16.63, then sold off slightly to close at $16.57.
On Monday (March 12), silver closely tracked gold, selling down early to open at $16.41, and closing higher at $16.50 as the DXY dipped back below 90.
Looking at last week's performance, it's apparent that silver's daily price movement is trading in a very tight range.
In fact, technical indicators suggest the precious metal is poised for a significant breakout.
Let's take a closer look at this indicator – and my profit target for the price of 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.