- Silver fell pretty significantly during the trading session again, as we continue to see a lot of wild swings in this market.
- Silver continues to be a dangerous place to trade.
The silver market has fallen pretty significantly during the trading session again in a replay of the carnage that we saw on Monday. Quite frankly, I don't know that you can read too much on this particular day because I believe most traders are probably trying to step away from the markets as it will be closed on New Year’s Day, and very thin with limited trading hours on Friday.
This is a very dangerous market to be involved in, but one thing that has become abundantly clear at this point is that the $70 level is going to be thought of as important. This market continues to see large, round, psychological levels as important milestones.
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If we break down below $70, I don't see much stopping this market from dropping down to $65. That doesn't mean we get there immediately, but I think you're looking at the beginning of a very serious rethink about this entire situation.
I suspect that by the time it's all said and done with silver, what you're going to end up with is a higher floor. What that ends up being, I don't know, but silver is not really sustainable at $82 an ounce, not this quickly. So, something has to give sooner or later.
That doesn't mean that I would short this market. It’s just that I would not jump in and throw a huge part of my portfolio into it because when it breaks, and it will break, it's going to be extraordinarily violent. Caution is the better part of valor here, as the danger is very real.
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