Silver markets gapped lower to kick off the day on Friday, but then turned around to explode to the upside as silver buyers came in on value. We are now above the $14.50 level, which of course is a major hurdle, and now it looks likely that we are going to run towards the $15 level above. That’s an area that has a certain amount psychological importance, so I would expect a short-term pullback from there. However, looking at the weekly chart I think there’s a real chance that we continue to go above there. I believe that it’s only a matter of time before buyers will pick up these dips based upon value, now that we have seen this massive surgeon volume and movement.
At this point, if we break above the $15 level and if we can stay there, adding to a long position might be the way that a lot of larger players continue to go forward. I would be a buyer of dips and think that it’s only a matter of time before we enter a nice long uptrend. At this point, the $14 level looks as if it has held yet again, and that the longer-term “smart money” has seen this area as important. That doesn’t mean that it’s good to be an easy ride higher, but it certainly looks likely that there will be continued interest in picking up silver, as the fear of missing out certainly is starting to grip the market. Silver is always volatile, so don’t be surprised when we pulled back sharply.