Silver markets rolled over during the trading session on Thursday, reaching down towards the $16.20 level, where we started to see buyers come back. The US dollar has strengthened a bit, so that of course works against the value of the silver market, but I think that even if we break down below there, the $16 level underneath is even more supportive. That’s an area where we have seen significant bounce is in the past, and I think there will be plenty of people willing to pick up silver “on the cheap” in that range.
If we were to break down below the $16 level, the market could go down to the $15 level underneath which I think is the absolute bottom of the market. If we were to somehow break down below $15, I think Silver markets would collapse. I doubt that’s going to happen anytime soon, and I think that we will look at the pullbacks as an opportunity to pick up a bit of value occasionally. Longer-term, the market probably goes to the $20 level, but I think it’s going to take quite some time to get there. I like buying physical silver, I believe that a continues to offer value, especially for the longer-term move which I think eventually breaks above the $20 level as mentioned and reaches towards $50. I believe that volatility is here to stay, so low leverage is an absolute necessity.
