Silver markets went back and forth during the week, bouncing around between the $16.25 level and the $16.75 level. This is a market that I think is going to be easy to trade back and forth with shorter time frames, but longer-term traders are going to need to think more pragmatically and look at the longer-term scenario. I believe that the market will eventually reach the $18.50 level, but it may take a while based upon what we have seen recently. I think that buying physical silver is probably the best situation for a longer-term trade. I believe that the $15.50 level underneath could be a hard floor in this market, based upon what we have seen over the last several months.
I think that the market is probably going to continue to be choppy in the foreseeable future, so I don’t have any interest in trying to time this move, and that’s why you need to keep this position without leverage, so it gives us an opportunity to ride out the volatility of a market that is volatile under the best of conditions. Ultimately, if we can break above the $18.50 level, the market will be free to go to the $20 level. If we break down below the $15.50 level, the $15 level underneath there is even more support, as I think it is a “zone of support” that keeps the entire market in check. Expect noise, but I think ultimately the buyers will prevail.