Depending on your timeframe, silver is either cheap or scary to hold onto. I believe that the marketplace will continue to find plenty of support below at the $15 level, and we are essentially in a big huge “zone” of the buying interest, and therefore I think that if you are a longer-term investor, this is an excellent place to start buying. This is especially true if you can do physical silver. However, I know that many of you are a CFD trader, so I would look at the $15.50 level above as significant resistance. If we were to turn around and clear the $15.60 level, then obviously we have seen a significant amount of buying pressure.
I believe that most of this is driven to a certain extent by the US dollar. The US dollar has rallied yet again, as major currencies have fallen apart. However, we are in areas that could cause turnarounds, and I think that the silver and other precious metals markets are going to be very noisy right now, suggesting that perhaps we could be looking at a very difficult trading environment. This is why I would prefer to see a “dead obvious” signal, but then again when wouldn’t we? Short-term volatility could be an opportunity, but only if you can watch the charts very closely. Otherwise, it becomes a good place for an investment.
