Silver markets fell a bit during the open on Monday, reaching down to the $16.60 level, which is the beginning of support that extends down to the $16.50 level. I think that the market will continue to find buyers down to that area, and therefore I look at this dip as a potential buying opportunity. This will be especially true if the US dollar falls, as eventually the correlation of higher precious metals with a lower US dollar should continue.
The $16.50 level being broken to the downside would open the door to the $16.25 level, followed by the $16 level. Longer-term, I suspect that the market probably goes looking towards the $17 level above. I think that the uptrend should continue overall though, so I do like these dips as value. I recognize that the market is very noisy and dangerous if you are heavily levered, so keep that in mind. I would be very cautious about putting too much money into the market, at least in one shot. I think that this market will eventually continue to go higher over the longer-term, but I would be adding only if we rally significantly. I think that small bits and pieces added should be a nice opportunity to build up a large core position, which I think eventually goes looking towards the $20 level above. If we turned around and fell from here, I anticipate that an opportunity to buy at lower levels will present itself.