Silver markets initially fell on Wednesday, but found enough support near the $16.20 level to turn around and break out to the upside. It looks likely that we will continue to reach towards the $16.50 level, an area that will attract a lot of attention. I believe that the market has a bit of a “floor” in it near the $16 level, and as a result I think that any move towards that area will have a lot of buying pressure into the market. A breakdown below there would of course be very negative, but I doubt that’s going to happen anytime soon. Quite frankly, I’m very interested in buying silver, but I recognize that this is more of an investment instead of some type of short-term trade. Short-term traders will be using a lot of leverage, I will be forgoing most leverage, and buying silver in physical bits as I believe we will go looking towards $20 over the next several months.
Buying dips, buying often
I am buying dips in silver, and I am buying often. The difference is I am buying it in small increments and that is going to be crucial. That way, I can hang on through the almost certain volatility that we will continue to see. Nonetheless, as we continue to see buyers jumping into the market, I think that we will have plenty of opportunities for pullbacks to offer the value necessary to trade this market, so therefore that’s exactly what I am looking to do. Slow and steady wins the race, and slow and steady is exactly how I think most profitable traders will be looking at this market over the next several months. As the US dollar loses some of its luster, Silver will start to shine.