Silver markets fell rather hard during the course of the day on Tuesday, slicing through the $17.50 level with ease. We also broke the back several somewhat supportive looking candles, and the fact that we closed just below the $17.00 level tells me that the silver market should continue to fall from here. With that being the case, I think that we are heading to the $15 level given enough time, and I also believe that selling any rally going forward should be the way to go going forward for short-term traders. I believe that silver is going to continue to struggle because of the strength of the US dollar, but having said that I think the real market to pay attention to is in fact the US Dollar Index, as it will be completely inverse of what this chart looks like over the longer term.
Longer-term is a different story…
All things being said though, I actually like silver for the longer term. It’s a little bit different story though as far as how I’m going to trade this market. In fact, I’m not trading silver at all, but rather buying physical silver as we get closer to the $15 level, as well as the $12 and $10 level. I think we could visit all of those areas given enough time, but quite frankly I think what’s going to happen is that we will have a longer-term bottoming out, which should offer plenty of buying opportunities from the physical side in order to add wealth to your longer-term accounts. In fact, I think it’s an excellent buying opportunity for retirement accounts.
With that being said, I am shorting the leveraged instruments at this point time on rallies, but looking to buy the actual physical metal in small increments as I think this bottoming process will take quite a bit of time. However, it would not surprise me at all to see this market raceway back up to the $50 level given enough time. I’m speaking in years at this point in time, not short-term at all. The selling of the CFD’s, futures markets, and options are more immediate, but the buying of physical silver is an investment.
