It's been a lackluster few weeks for silver prices.
Over the last month, the precious metal has traded between $14.20 and $14.80, with an average consolidation price of $14.65.
However, it looks like there's a significant breakout on the way – and tremendous profits for savvy silver investors.
Over the last month, gold prices have surged, tacking on over 3% in just the last two weeks.
And it looks like silver prices are next.
You see, I believe that we're entering a sweet spot for silver prices over the next few months.
While gold continues to struggle to find a catalyst, the price of silver made a notable move this week.
Silver prices are up almost 2% in the past week and nearly 3% in the last two weeks.
This could just be the start for the rally in silver prices this year...
By A.J. Bursick, Associate Editor, Money Morning - • Print | Email
Silver price action this week, though muted, has shown some slight bullishness.
With gold essentially flat, the price of silver has managed to gain nearly 1.5% as it rises from price and sentiment lows.
Now, silver is likely to wait and follow gold's lead as we move into the next FOMC meeting this week.
My take is the dollar could see a bounce from the expected rate hike, then sell off in the following days.
Yet another lackluster week for the price of silver has left the metal trading in a range near $14.15 per ounce. Volatility is low, and that has kept sentiment in the toilet. It's little wonder.
Whether up or down, traders have few opportunities to make money trading an asset that moves so little. But volatility won't stay low forever. This past year silver volatility was nowhere to be found until June, when silver prices sold off and the action was nearly all downward.
The biggest news in the price of silver this week has very little to do with the actual price.
In fact, silver has gone basically nowhere as it continues to consolidate around the $14.15 level in search of a catalyst.
What's worth noting, however, is that the U.S. Mint has sold out its inventory of 2018 American Eagle Silver Bullion Coins.
Here's what that rising demand means for silver prices looking forward...
Just when it looked like the price of silver was about to turn around, the metal has given up all its recent gains.
On the back of some renewed strength in the dollar, silver has caved and dropped back under even its previous low in mid-August.
The price of silver today (Wednesday) is trading near $14.26.
Now, here's what I see for the price of silver this week...
After an initial bounce from its recent lows, the price of silver has been performing well this week.
Although silver prices did initially plateau then retreat again last week, the metal formed a higher low, which bodes well for near-term action.
Last week, I told you that silver's bounce had been timid but conditions were ripe for a strong rally.
After becoming significantly oversold late last week, the price of silver has managed to show some strength.
So far that bounce has been somewhat timid. But conditions are ripe for a strong rally.
The price of silver made a valiant effort to rally twice last week, but to no avail. Rather than head toward gold and silver as safe havens, investors favored the U.S. dollar.
The U.S. Dollar Index made another run towards 95.5, punishing silver prices and a host of other commodities along the way.
