Silver markets continue to be a bit consolidated during trading on Wednesday, as we bounced between the $14.60 level and the $14.70 level. I think given enough time though, we will probably break through this level and continue to go towards the $15 level again. This will be especially true if the US dollar continues to soften overall, something that I think is quite possible. After all, the EUR/USD pair looks as if it is starting to recover after the initial pullback, and that should continue to push precious metals a bit higher.
I think at this point, the $14.50 level will probably be supportive, and I think at that point it’s likely that we will see plenty of buyers coming into the market as demand will be high. I think that if we can break above the $15 level, the market should go much higher, perhaps reaching towards the $17 level. Longer-term that is what I believe, and I have been buying physical silver for what seems like ages now. I believe given enough time we will eventually see this market not only reach $17, but possibly $20. That’s a long-term call obviously, but in the short term I prefer to buy small dips with low leverage when not talking about physical holdings. The marketplace continues to be one that I think favors the upside, but obviously there are a lot of concerns around the world that have people jumping into the greenback occasionally. Overall though, I think it’s a market that will continue to attract fresh money.