Silver markets drifted slightly lower during the trading session on Thursday, as we continue to be attracted to the $16.25 level. I think that the market has even more support down at the $16 level, and I think I’m even more bullish to silver down at that level. Yes, the last couple of days have been negative for the Silver markets, but I think we are starting to approach massive support that should give us an opportunity to pick up Silver “on the cheap”. I think that ultimately this market will continue to find that area as supportive, as it is structural support, and there are a lot of questions about the global economy right now.
Silver can sometimes be used as an opportunity to protect well, especially when there is a lot of fear out there, but at the same time it will rally when there’s a huge “risk on” move. I believe that we are close enough to the bottom of the overall range to make this a market that can’t be sold. The $17 level above will course continue to be massive resistance, so this is a short-term trader’s type of market. I believe that Silver continues to be very choppy, but that’s nothing new, silver typically is. Longer-term, I anticipate that we will eventually break out to the upside but obviously we are not ready to do so right now.