A Silver Price Forecast For 2017
Silver is breaking down, similar to gold and miners. That does not bode well for the price of silver in 2017. How deep could silver fall in 2017? That is the question we try to answer in this article.
Silver’s breakdown should not come as a surprise, as we warned our readers already two months ago that silver was on the verge of correcting, just weeks after the Brexit frenzy.
We do realize that we were a lonely voice, as evidenced by Bloomberg’s bullish silver article, Keith Neumeyer’s nine-bagger prediction for silver’s price, the expectation for a bullish silver price after the Brexit. The Daily Bell came out with a fundamental argumentation on why the price of silver must go higher. All that is fine, but serious investors should realize what it is: it’s media.
Media articles are not a solid basis for smart investments.
Our analysis revealed a red flag for silver when the grey metal hit this triple resistance point which is visible on its long term chart (see below). Let’s be honest: a tripple resistance point is not a coincidence, and it should be taken very seriously.
Since then, silver’s 2016 rally has stalled, and, as a consequence, it resulted in a stiff correction this week. We believe this correction has more downside potential.
How low could silver fall in 2017? The answer is very simple: by examining the silver chart, we can derive a first obvious target of $15, to be reached somewhere in the first months of 2017. In case that support area would be breached, we would say that the most bearish scenario would result in a $10 silver price.
We do not expect silver to fall as low as $10 in 2017, but don’t exclude it neither, for the same reasons outlined in our gold price 2017 forecast. The alternative bearish target would be $12, i.e. the 2007 and 2009 lows.
Short term, the $15 target is as good as a fact.
silver price forecast 2017
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