Silver markets initially went sideways on Thursday, hanging above the $16.50 level before breaking down. This had a lot to do with the US dollar strengthening more than anything else, and I think that the market probably goes down to much lower levels, perhaps the $16 level. I think that the market will eventually rally though, and if we can break above the $16.75 level, it’s likely that we go to the $17.25 level above. Ultimately, the volatility should continue but I do like the idea of owning silver in general, so I have been buying physical silver. If you are short-term trader, you can use the futures markets as well, as there are obvious resistance barrier’s above, and if we can break above that level it’s likely the at short-term pops that you can take advantage of.
Remember that Silver is highly volatile, so start out slow and take advantage of these moves. As far as the longer-term trade is concerned, I still prefer buying physical silver as waiting out the markets might be necessary if you wish to profit. I think that it’s difficult to be highly levered and wait for the market to finally break out to the upside like I think it will. The $16 level underneath should serve as a bit of a floor in the short term, and the closer we get to that level, the more likely I am to start buying.