The Silver markets were very noisy during the trading session on Friday, reaching towards the $16.75 level, and beyond only to turn around and fall, and find buyers again. The market seems to be very noisy, but I think it has more of an upward proclivity. The $16.50 level underneath should be supportive, and I think that it’s only a matter of time before we go to the upside and go looking towards the significantly important $17 level. Silver markets are very volatile, and I think that it’s only a matter time before we move in either direction, so taking the leverage out of the position is probably the best way to go.
I like the longer-term outlook for silver, and I think that it’s only a matter of time before value hunters come back into this market and pick up more to add to their positions. If you can keep your leverage low, silver is a great investment as it should continue to find plenty of buyers on dips. Otherwise, if you are short-term trader, you should be looking towards a “by on the dips” mentality. The market continues to find plenty of reasons to move around based upon geopolitical events, so it will obviously continue to be difficult. I think that eventually you should find cheaper sober to take advantage of. If we can break above the $17 level, the market should continue to go much higher.