With the recent surge in gold to five-year highs, the price of silver may just be coming into its own.
Since my last silver update, stocks have come roaring back to near all-time highs.
But interestingly, silver prices have rallied as well, benefiting from all the trade war talk and the cloudier economic outlook.
Here’s my prediction for how high the price of silver is headed in 2019…
With the recent surge in gold to five-year highs, the price of silver may just be coming into its own.
Since my last silver update, stocks have come roaring back to near all-time highs.
But interestingly, silver prices have rallied as well, benefiting from all the trade war talk and the cloudier economic outlook.
Here’s my prediction for how high the price of silver is headed in 2019…
In the face of escalating trade war rhetoric, almost no asset has escaped selling.
The S&P 500 is down 1.5%, crude oil is down about 4%, gold is nearly flat, and the silver price is down 3.9%.
The price of silver has trended downward in the entire last month, but it's definitely not forever - and there are many reasons for this.
There's no sugarcoating it: The past month has been unkind to the price of silver.
But strong evidence indicates the drought could end soon.
The price of silver has been in a holding pattern since late February, but the Fed's recent announcement was enough to push silver from $15.30 to $15.50.
Now, it's looking more like the silver price's correction has run its course and the metal is preparing itself for the next run higher.
The price of silver gyrated last week, exhibiting more volatility than gold.
It was a story of three steps forward, one step back, as the metal reached back above the $16 mark, but was unable to hold that level.
Like gold, silver prices looked like they had finished consolidating, before the end of last week.
The price of silver started consolidating in late January and continued through the past week.
While silver prices dropped a little lower late last week to the $15.55 level, they quickly reversed and have already come close to the recent $16 ceiling.,
And all of this has happened while the U.S. dollar index tacked on as much as 150 basis points.
Despite recent dollar strength, a dovish tone from the Fed may have capped rate hikes this year.
That may limit the dollar's rally and boost the silver price as we move further into 2019.
Since peaking just above $16 in late January, the price of silver has moved into consolidation mode. In fact, in last week's update, I told you not to be surprised about any pullback going forward.
So far it's been a pretty mild correction in silver prices, which have dropped from a $16.07 peak to their current level near $15.65. Still, the precious metal is up 12% since November and has held up well despite recent strength in the U.S. dollar.
The price of silver enjoyed a bullish uptick over the past week, so any pullback now should come as no surprise.
In fact, silver prices rallied 5.7% in the last 10 days of January, and a stunning 15.3% from mid-November.
A near-term consolidation in silver prices would not only be expected, it will be healthy as such dramatic gains are digested before the next move.
I fully expect that move to be higher for a number of reasons.
The latest action in the price of silver has helped confirm the newly emerging bull market.
In early January, silver prices twice tested $15.75 to close above $15.70. The second time they tested that level, they quickly reversed, with silver dropping back to $15.55, then gradually falling even further.
The DXY dropped off considerably last week, as investors turned their interest toward earnings season and began pricing in continued dovishness from the Fed.
After peaking twice just south of $16, the price of silver has started to back off.
The precious metal put in a stellar performance in the two months between early November and early January, climbing from $14 to almost $16.
That was a powerful 14.3% move.
Now, we're starting to see some traders take profits and even rotate back into stocks, which have turned higher in the last three weeks.
With silver prices holding near their 200-day moving average and possible renewed weakness in the U.S. dollar, we could well see this precious metal return to rally mode before long.
These are truly exciting times for precious metals.
The price of silver has been performing exceptionally well, especially since late December.
That's when silver prices embarked on a string of higher closes for seven consecutive days. In the past, moves like this have proven themselves to be a strong signal that further rallies lie ahead.
2018 was a volatile year for silver.
In the last 12 months, silver prices have swung between a 52-week low of $13.95 to a staggering high of over $17.50.
While silver gains have cooled over the last month, there's plenty of evidence that the precious metal will climb to new heights in 2019.
The price of silver has been steady over the past week and is still up tremendously since late December. In fact, silver prices are still up more than 9% from their December low.
At this point, a small pause in silver's rise would not surprise me. The metal typically takes a little time to digest its massive gains.
Even just a quick glance at the price of silver is enough to alert any investor that this metal has begun a new rally.
If we look at silver's action since early November, there's a lot for bulls to be excited about.
Often referred to as the "poor man's gold," silver has outstanding characteristics that make it valuable, and even indispensable, to industry and beyond.
That's why I remain bullish in my silver price prediction for 2019...
I think 2019 could be a stellar year for silver prices as a confluence of catalysts come together
