Market Turmoil Is Setting Silver Prices Up for a Historic Rally
Peter KrauthIt'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 price of $14.65.
However, it looks like there's a significant breakout on the way, which could mean tremendous profits for savvy silver investors.
You see, market instability, rising bond yields, and a volatile dollar are putting pressure on the gold-to-silver ratio – and pushing silver prices up in the process.
As market instability pushes investors toward "risk-on" equities, silver prices are likely to take off…
Silver Prices Are on the Verge of Breaking Out
Silver and the dollar have traded in lock step over the last week.
On Tuesday (Oct. 16), the U.S. Dollar Index (DXY) fell as stocks bounced back from this month's early sell-off.
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Silver fell in turn as investors pulled money out of precious metals, which are often used to hedge losses during a sell-off.
However, as markets peaked on Wednesday (Oct. 17), the DXY began to rally with silver following close behind.
You can see the dollar's rally in the chart below…
The DXY rallied from 94.8 on Tuesday (Oct. 16) to a high of 96.08 on Friday (Oct. 19).
Unfortunately, the dollar's aggressive rally ended up suppressing silver prices as the week wore on.
Silver dropped to about $14.50 early on Thursday, then recuperated to a high around $14.68 on Friday before closing at $14.60.
On Monday (Oct. 23), growing geopolitical tensions across the globe pushed the dollar up further, driving silver prices to a low of $14.50.
While these declines are sharp, they've created a great buying opportunity for silver – one you shouldn't miss according to my latest silver price prediction…