I believe the Silver markets have reached towards the bottom of the overall range, and it’s likely that we will turn around rather soon. In fact, during the week we reach towards the $16 handle, an area that is attracted a lot of attention. We pulled back slightly from there, but I think it’s only a matter of time before grinding higher. However, Silver is a very volatile market and therefore it’s much easier to trade from a shorter-term standpoint in the futures market, or perhaps using physical silver is the best way to go if you are more of a longer-term trader.
Personally, I’ve been buying physical silver for some time, and down in this area I’m willing to buy even more. This is because we have seen such a violent return to the upside every time we get in this general vicinity, and I would also be the first point out that even though we have dipped below this area, we have yet to close below here in the last almost 2 years. I believe that the gold markets are flashing signs of going higher, and that should have a bit of a “knock on effect” over here as well. The US dollar looks vulnerable to other currencies, and that of course should help silver also. I think that the $18 level will be the target, with the stop every $0.50 on the way out. If we were to break down below the $15 level, that would be very negative, and could send this market much lower.