Silver markets fall hard on Tuesday

Silver markets went sideways initially during the trading session on Tuesday, reaching down towards the $16 level. That’s an area that is significant in its longer-term structure, extending down to the $15.50 level. I think there is a lot of support underneath, but if we continue to see interest rates rise in America, we could break down below that level which would be a major turn of events. I still believe that eventually Silver becomes a nice investment, but it’s easier to buy the market in physical metal more than anything else. I think that is easiest way to play this market, but if you are short-term trader, I would be looking for value or some type of bounce for short-term scalps soon.

Longer-term, if we broke down below the $15.50 level, that would be a major breakdown, and this of course could send the market looking for the $15 level, and then perhaps even lower. That would be catastrophic for silver, and it would more than likely go looking for the longer-term base of $12. This is why I believe that buying silver for anything more than a scalp has to be done with physical silver, because at that point you are not taking massive losses like you could using leverage. While I believe that there is an argument to be made for precious metals in your investments, we are certainly hurting in the short term. This is why you should never go “all in” when it comes to metals, especially with banks such as J.P. Morgan shorting in the futures market so heavily to keep prices down.

SILVER Video 02.05.18