Silver markets fell initially during the trading session on Monday, reaching down to the $16.20 level. That’s an area that has been important in the past, and most certainly we see a significant amount of support closer to the $16 level. I think at this point, silver looks likely to continue to go higher, perhaps breaking out and above the $16.75 level, allowing the market to go to the $17.50 level. Silver markets will of course follow gold, and gold is starting to show signs of rallying. I think that value hunters will continue to come back into this market, and if interest rates can calm down a bit in America, that could give us reason enough to go higher as well.
I look at the $16 level as major support, and if we break down below there I think that the market would go to the $15.50 level underneath which is a longer-term “floor” in the market overall. Silver is a very volatile precious metal to trade, so I’d be cautious about putting too much into the market initially, but I have been buying physical silver for quite some time. Physical silver of course takes out the leverage, it becomes more of an investment than anything else. The market participants are going to be attracted to this market on these dips, because there has been so much resiliency shown over the last several years. Once we break out to the upside, we could be looking at $20, but that could be months, if not years down the road.