Silver markets fell a bit during the trading session on Friday, after initially trying to reach towards the $16.60 level. The market looks very likely to continue to bounce around in general, as we are building up a larger base on the weekly chart. I think that it is only a matter of time before the buyers come back, especially considering that the US dollar continues to look very soft longer term. I think that it’s likely that Silver will continue to benefit from this, as will all precious metals markets. If we can break above the $16.75 level, the market should continue to go towards the $17 level next.
Ultimately, I think that every time we dip, there is a lot of underlying pressure underneath just waiting to pick up cheap silver. I think that given enough time, the market will then go looking towards the $20 level, which is my longer-term target. Beyond that, I think that the markets will reach even higher, as there is a lot of concern with the treasury markets and its effect on the greenback. I think that it is going to be very noisy, but in the end, silver should be a winner. Every time we pull back, I looked at a little bit to my larger position. If we were to break down below the all-important $15 level, it would be a massive breakdown, probably wiping out this market. Ultimately, I think that the noise offers plenty of opportunities, and I think that we have more of those to come.