Silver markets went sideways initially on Friday, hugging the $16.40 level. That’s an area that has offered support more than once, and the fact that it held was not a huge surprise. I think that the explosive move that once the Americans came on board shows how they feel about the US dollar in general, and the potential of a trade war. Remember, sometime silver can be used as a bit of a hedge against risk. While Silver is a bit more volatile than gold, it does typically follow what gold does, and gold looks as if it is trying to find buyers again on Friday.
I believe that there is plenty of support underneath, and I don’t have any interest in shorting Silver anyway. I believe in the longer-term efficacy of an uptrend, and I also believe that we are forming a massive base in the market that could send this market to the upside. I think that given enough time we will probably go towards the $18 level, and then eventually the $20 level. Longer-term, I believe that several years are now we could be reaching as high as $50. However, that’s obviously in an investment type of mindset more than anything else. It is because of that that I’ve been buying physical silver. For the short-term trader, buying on dips seems to be working out, taking profit after a $0.20 gain or so. I believe that the absolute “basement” in the market is somewhere near the $15 handle.